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HomeMy WebLinkAboutORDINANCE 03-77ORDINANCE NO._____ AN ORDINANCE AUTHORIZING THE ISSUANCE OF ELEC TRIC REVENUE BONDS,OF THE TOWN OF ESTES PARK, COLOP.DO,IN THE PRINCIPAL AMOUNT OF $550,000, FQR THE PURPOSE OF EXTENDING AND IMPROVING THE FLECTRICAL SYSTEM OF THE TOWN;PRESCRIBING THE FORM O’SAID BONDS AND PROVIDING FOR THE APPLICATIO OF THE NET REVENUE OF THE ELECTRICAL SYSTEM TO PAY THE BONDS AND THE INTEREST THERE— O,AND OTHER DETAILS IN CONNECTION THEREWITH; AND DECLARING AN EMERGENCY. WHEREAS,a majority of the voters of the Town of Estes Park,Colorado,who were taxpayers under the law,voting on the question at a municipal election lieretofor held in said Town,by their vote approved and authorized the Board of Trustees of the Town to acquire a municipal electrical system for the Town,the same to be owned and operated by the Town;and WHEREAS,ever since that time the Town has owned, operated and maintained said municipal electrical system;and W-!EREAS,the Board of Trustees of the Town of Estes Pk has determined that it is necessary to extend and improve the existing electrical system of the Town;and WHEREAS,there are not sufficient funds on hand in the treasury of the Town for such purpose,and the Board of Trustees deems it necessary and advisable to authorize the is suance of electric revenue bonds in the principal amount of $550,000 for such purpose,such bonds and the interest thereon to be payable from the net income and revenue of the electrical system of the Town;and WHEREAS,the Board of Trustees has further determined that it is necessary at this time to authorize the issuance of the electrical revenue bonds in the principal amount of $550,000; BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK,COLORADO: Section 1.Authorization.That for the purpose of extending and improving the electrical system of the Town,there are hereby authorized Electric Revenue Bonds,of the Town, in the total principal amount of $550,000,both the principal thereof and the interest thereon to be payable solely and only out of the net income and revenue to be derived by the Town from and through the operation of its electrical system.It is hereby determined that the estimated life of the electrical facilities to be acquired by the proceeds of this bond issue is not less than ten years. Section 2.Bond Details.The bonds shall be dated February 1,1977,consisting of 110 bonds in the denomination of $5,000 each,numbered 1 to 110 inclusive.The net effec tive interest rate of this issue of bonds is 5.1073%.The bonds —2— a shall bear interest payable on August 1,1977,and semi—annually thereafter on February 1 and August 1 each year,and mature serially on February 1,as follows: Amount Maturity Interest Rate $50,000 1978 3.25% 0,0O0 1979 3.75% 50,000 1980 4.00% 50,000 1981 4.25% 50,000 1982 4.40% $50,000 1983 4.65% 50,000 1984 4.80% 50,000 1985 4.90% 50,000 1986 5.00% 100,000 1987 5.00% Bonds of this issue maturing on or before February 1,1982 shall not be redeemable prior to their respective maturity dates.Bonds maturing on February 1,1983,and thereafter, s-.11 be redeemable at the option of the Town on February 1, 1q82 and on any interest payment date thereafter,in inverse nerical order,upon payment of par and accrued interest,without redemption premium.Notice of prior redemption shall be given by publication at least one time in a newspaper having general circulation in the Town,not less than thirty days prior to the date of redemption.In addition,notice of such prior redemption shall be given by certified mail to Boettclier and Company, Denver,Colorado,at the time of publication. The principal of and interest on said bonds shall be payable at the office of the Town Treasurer,in Estes Park, Colorado. Section 3.Pledge of Income.All of the bonds, together with the interest accruing thereon,shall be payable solely out of the net income to be derived from the operation of the Town’s municipal electrical system,the income of which is so pledged;the holder or holders thereof may not look to any general or other fund for the payment of prinicpal of and interest on such obligations,except the designated special funds pledged therefor;and such bonds shall not constitute an indebtedness nor a debt within the meaning of any constitu tional or statutory provision or limitation;nor shall they be considered or held to be general obligations of the Town. —3— 0’ Section 4.Form and Execution of Bonds.The Bonds shall be signed with the facsimile signature of the Mayor of the Town,sealed with a facsimile of the seal of the Town, countersigned by the facsimile signature of the Town Treasurer and attested by the manual signature of the Town Clerk,and the interest coupons attached thereto shall bear the facsimile signa ture o the Town Treasurer.When issued as aforesaid as part of sc1 bonds,such interest coupons shall be the binding obligations c the Town according to their import.Should any officer whose manual or facsimile signature appears on said bonds,or the iflterest coupons attached thereto,cease to be such officer before dIivery of the bonds to the purchaser,such manual or facsimile siqnature shall nevertheless be valid and sufficient for all purposes. The bonds and interest coupons shall be in substantially the following form: —4— (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER TOWN OF ESTES PARK ELECTRIC REVENUE BOND NO.$5,000 The Town of Estes Park,in the County of Larimer and State of Colorado,hereby promises to pay to the bearer hereof, o;t of the special fund or funds hereinafter designated,but not otherwise,the principal sum of FIVE THOUSAND DOLLARS on the 1st day of February,19,with interest thereon at the rate of per centum •%)per annum,payable on August 1,1977,and se—annually thereafter on the 1st day of February and the 1st di of August each year,as evidenced by interest coupons attached hiceto,both principal and interest being payable in lawful mory of the United States of America,at the office of the Town Treasurer,in Estes Park,Colorado,upon presentation and surrender of the annexed coupons and this Bond as they severally become due. Bonds of this issue maturing on or before February, 1,1982,shall not be redeemable prior to their respective ma turity date.Bonds maturing on February 1,1983 and thereafter, are redeemable at the option of the Town,in inverse numerical order,on February 1,1982,and on any interest payment date thereafter,upon payment of par and accrued interest without redemption premium.Notice of such prior redemption shall be given in the time and manner as more particularly set forth in the Ordinance authorizing the issuance of this Bond. This Bond is issued by the Board of Trustees of the Town of Estes Park,Colorado,for the purpose of extending and improving the electrical system of the Town,under the authority of and in full conformity with the Constitution and Laws of the State of Colorado,and pursuant to Ordinance No. _________ of said Town,finally adopted and approved by the Board of Trustees on January 25,1977. Both the principal of and the interest on this Bond are payable solely out of a special fund created in full con formity with law and designated as the “Electric Revenue Bond and Interest Fund”,of the Town,into which Fund the Town cov enants and agrees to deposit,from the net income and revenue of the municipal electrical system,amounts sufficient to pay the principal of and interest on this Bond,when the same become due and payable. —5— 0 If necessary payment of principal and interest shall he made from the reserve fund created for such purpose,all as is more particularly set forth in the ordinance authorizing the issuance of this Bond.The bonds of this issue are equitably and ratably secured by a lien on the net income and revenue of the electrical system,and constitute an irrevocable and first lien (hit not necessarily an exclusive first lien)on said net income and revenue and Funds. It is hereby recited,certified and warranted that for the payment of this Bond,the Town of Estes Park has created and will maintain said Funds and will deposit therein the amounts ad revenue specified in said ordinance,and out of said Funds,as irrevocable charge thereon,will pay this Bond and the interest thereon,in the manner provided by said ordinance.For a descrip tion of said Funds and the nature and extent of the security afforded thereby for the payment of this Bond,reference is made to that ordinance. This Bond does not constitute a debt or indebtedness of the Town of Estes Park within the meaning of any constitutional or statutory limitation,and shall not be considered or held to be a generai obligation of the Town. Ic is hereby certified and recited that all the require ments of law have been fully complied with by the proper officers of the Town in the issuance of this Bond. For the payment of this Bond and the interest thereon, the Town of Estes Park pledges the exercise of all its lawful powers. IN TESTIMONY WHEREOF,the Board of Trustees of the Town of Estes Park,Colorado,has caused this Bond to be signed with the facsimile signature of the Mayor,sealed with a facsimile of the seal of the Town,countersigned by the facsimile signature of the Town Treasurer,and attested by the manual signature of the Town Clerk,and the attached coupons to be signed with the fac simile signature of the Town Treasurer,as of the 1st day of February,1977. (FACSIMILE)TOWN OF ESTES PARK,COLORADO(SEAL) By (Facsimile Siqnature) Mayor COUNTERS IGNED: (Facsimile Signature) Town Treasurer ATTEST: (Manual Signature) Town Clerk —6— 0. (Form of Interest Coupon) No. _____________ $ February, Or the 1st day of August,19,unless the Bond to which this coupon is attached,if redeemable,has been called for prior redemption,the Town of Estes Park,in the County of La:imer and State of Colorado,will pay to bearer the amount shown hereon in lawful money of the United States of America,at the office of the Town Treasurer,in Estes Park,Colorado,out of the special fund or funds referred to in said Bond,but not otherwise,being interest then due on its Electric Revenue Bond, dated February 1,1977,bearing No. ________ (Facsimile Signature) Town Treasurer —7— Section 5.Disposition of Bond Proceeds.The Bonds shall be sold and delivered to the purchaser,solely to provide the Town with money for the purpose hereinbefore stated. All or any portion of the bond proceeds may be temporar— il:invested,r reinvested,pending such use,in securitites or c:.igations which are lawful investments for such municipalities in the State of Colorado.It is hereby covenanted and agreed by the Town that the temporary investment or reinvestment of the bond proceeds,or any portion thereof,shall be of such nature and exLent,and for such period,that the bonds of the Town shall not be or become “arbitrage bonds”within the meaning of Section 103(c)of the Internal Revenue Code,and pertinent regulations, a:-J such proceeds,if so invested or reinvested,shall be subject to the limitations and restrictions of said Section 103(c),as the same now exists or may later be amended,and shall further be s,ject to any applicable regulations of the Internal Revenue Service. Neither the purchaser of said bonds,nor the subsequent bolders of any of them shall be responsible for the application or disposal by the Town or any of its officers of the funds derived from the sale thereof. The issue of said bonds by the Town shall constitute a warranty by and on behalf of the Town for the benefit of each and every holder of any of said bonds,that the bonds have been issued for a valuable consideration in full conformity with law. Section 6.Payment of Interest During Construction. If necessary,the interest due on said bonds during the construc tion of the extensions and improvements shall be advanced from any fund of the Town available therefor,said amount to be later reimbursed from the net income and revenue of the electrical system.The principal of and interest on said bonds shall be payable solely out of the net income and revenue to be derived by the Town from the operation of the electrical system as specified in this Ordinance.The term “Electrical system”,or “System”, as herein used,shall include not only the property comprising the electrical system at the present time,but all additions and betterments thereto and improvements and extensions hereafter constructed or accrnired by the Town. S e c t i o n 7.Rates and Char2es For Service ythe Electrical System.The Board of Trustees of the Town covenants that it will establish,maintain and enforce rates and charges for services,facilities and electricity of the Electrical System to create income and revenue each year sufficient to pay main tenance and operation expenses of the system,an amount equal to —8— not less than 110%of the annual interest and principal require— mér’:of the bonds authorized herein and any revenue bonds which ray thereafter be authorized and issued by the Town,and to provide for the reserve fund hereinafter mentioned.In the event that the revenues at any time are not sufficient to make such payments,the Town shall increase the rates and charges for electrical services to such an extent as to insure the payments and accumulations required by this ordinance. It shall be the duty of the Town to establish,main— tein and enforce such rates continuously until all of said bonds and the interest thereon have been fully paid and discharged. Section 8.Payment of Principal and Interest.There i hereby established and created a special fund to be known as the “Electric Revenue Bond and Interest Fund”,and the Town hereby covenants and agrees to maintain said Fund so long as any of the bonds herein authorized remain outstanding and unpaid. Said Bond Fund shall be kept separate and apart from all other fu-ds of the Town,and shall contain all of the income and revenue derived by the Town from the operation of its electrical system aster the payment of all necessary and reasonable costs and expenses of operating and maintaining said electrical system.The owners and holders of the Electric Revenue Bonds herein author ized shall have a first and prior lien,but not necessarily an exclusive first lien,on such net revenues,the Bond Fund and the Reserve Fund hereinafter referred to.Such net revenues are hereby irrevocably pledged for the following purposes and shall be disbursed in the following manner and order: (a)For the prompt payment of the interest on and the principal of the bonds authorized herein,when and as the same shall become due and payable,respectively,and any additional bonds payable from the net income and revenue of the electrical system and having a lien thereon on a parity with the lien of the bonds authorized herein. (b)For the deposit,if necessary,to the Reserve Fund,created as additional security for the bonds herein au thorized,as more particularly set forth in the following section, and for the deposit to a reserve fund which may be created as additional security for any additional parity lien bonds hereafter authorized. (C)After the above payments and deposits have been made,the remaining net revenue may be used for the purpose of redeeming bonds prior to maturity,for making necessary exten sions to or improvements of the System,or for such other purposes as the Board of Trustees may determine. —9— Section 9.Bond Reserve Fund.There is hereby created a special fund designated as the “Bond Reserve Fund”for the purpose,if necessary,of paying the principal of or interest on the bonds authorized by this Ordinance.The Reserve Fund shall be accumulated in the total amount of $50,000 on or before February 1,by the deposit of $10,000 on or before February 1,1978 and the deposit of $10,000 on or before February 1 each year thereafter until February 1,1982.The Reserve Fund shall be maintained until such tine as the amount therein will be suffi cient to pay all of the outstanding Bonds authorized by this o]inance and the interest thereon.The money in the Reserve Fund mrcy be used to prevent defaults in the payment of the bonds herein •ahorized and interest thereon,but if used for such purpose,it sll be restored to the fund as soon as possible.Moneys in the Reserve Fund may be invested in securities or obligations which are lawful investments for such muncipalities in the State of C1orado,and the interest from any such investments shall be considered as net revenues of the system. Section 10.Covenants of the Town.The Town of Estes Park hereby irrevocably covenants and agrees with each and every Lolder of the Electric Revenue Bonds,dated February 1,1977,as follows:- (a)That it will continue to operate and manage its electric light and power system in an economical and efficient manner and supply electric current to the inhabitants of the Town and all others who may be lawfully served thereby. (b)That it will furnish no free service and that as long as the Town shall use electricity for street lighting and other municipal purposes,it shall pay monthly,into the Electric Revenue Bond and Interest Fund,a fair and reasonable amount for such service,and in determining what shall be a fair and reason able amount,the Board of Trustees shall take into consideration what it is now paying for street lights and other municipal service,and what other towns in Colorado,similarly situated,pay for like service.In no event shall the Town pay a greater amount than would be charged a private consumer for the same amount of electricity furnished for lighting purposes.The Town shall include in its annual appropriations and budgets,amounts suffi cient to pay for all municipal service from the System. fc)That as long as any of said bonds remain outstanding,the Town will furnish the original purchaser of the bonds a statement showing in reasonable detail the receipts and disbursements of the System for any designated period,and at least once each year it will cause an audit to be made of the books relating to its electric light and power operations,such audit to be made by a competent accountant,and a copy of the auditor’s report shall be filed with the original purchaser.The cost of the reports and audits shall be considered an expense of operation. —10 — fd)That it will not grant a franchise for elec tric light and power operations in the Town,and will not sell or alienate the System or any necessary part thereof,unless and until arrangements are made satisfactory to the owner or owners of three—fourths of the bonds then outstanding for the payment of the principal of and the interest on the outstanding bonds. (e)That it will carry fire,workmen’s compensa tion and public liability and such other forms of insurance on the System in such amounts as shall properly protect the System and ts operation,the cost thereof to be considered as an operating expense.In the event of any loss or damage to the System,the insurance money shall be used for restoring,replacing or repair ing the property lost or damaged,and the remainder thereof,if any,shall be considered as nt revenue of the System. (f)That there are no liens or encumbrances of any nature whatsoever on or against the System or the revenues derived or to be derived from the operation of the same. (g)That the holder of any of the bonds herein authorized shall have the right at all reasonable times to inspect th System and all records,accounts and data of the Town of Estes Park relating thereto. (h)That it will render bills for all services supplied by the SYstem on a monthly basis.If any account be not paid within 5 days after notification of the delinquent bill, service to the property of the delinquent shall be discontinued, and shall not be restored until all delinquencies have been paid in full,plus the cost of disconnecting and reconnecting the service. Section 11.Additional Bonds,Requirements and Limita tions.No additional bonds shall be issued payable from the income and revenue of the electrical system and having a lien upon such income and revenue which is superior to the lien of the bonds authorized herein. The Town shall not issue any additional bonds payable from the net income and revenue of the electrical system and having a lien on such income and revenue on a parity with the Electric Revenue Bonds authorized by this ordinance unless: (a)The Town is then current in the accumulation of all amounts required to be then accumulated in the Electric Revenue Bond and Interest Fund and Reserve Fund as required by this Ordinance. (b)The net income and revenue of the electrical system for the previous calendar year shall be equal to not less than 110%of the combined average annual requirements for principal and interest on the Bonds authorized herein and the proposed parity lien bonds to be issued;HOWEVER,if the Town should capitalize the reserve requirements on the Bonds authori zed herein and the proposed parity lien bonds to be issued, the Town may issue such parity lien bonds on a one to one coverage basis of average annual combined debt service requirements. —11 C (c)For purposes of the test set forth above, if there has been adopted a schedule of increases in rates and charges during or since the previous calendar year and the date of issuance of the parity lien obligations,there may be added to the actual revenue for said preceding calendar year an esti— mated sum equal to 100%of the estimated increase in revenues which would have been realized during said calendar year had such rte and charge increase been in effect during all of such p::ceding calendar year.Such estimate shall be made in writing by an Independent Certified Public Accountant or Consulting Erineer and if used in connection with the certificate herein— ter provided for in paragraph (d)of this Section,such estimate shall be conclusive in determining the right of the Town to authorize,issue,sell and deliver said additional bonds or other 1ditional obligations on a parity with the Bonds herein authoriz ed. (d)A written certificate by an Independent Certified Public Accountant or Consultin9 Engineer that such annual revenues are sufficient shall conclusively determine the rUSt of the Town to issue additional parity bonds.Said Accoun tant or Engineer may utilize the results of any annual audit to the extent it covers the applicable period. Nothing herein shall prevent the Town from issuing bonds having a junior or subordinate lien on the income and revenue of the electrical system. Section 12.Payment of Costs of Issuing Bonds.All costs and expenses incurred in connection with the issuance and payment of the bonds authorized herein,shall be paid exclusively from the proceeds of said bonds or from the net income and revenue of the Electrical System,and in no event shall any of such costs or expenses or the principal of or interest on said bonds be paid out of or charged to the general funds or tax levies of the Town. Section 13.Severabi1i.That if any one or more sections or parts of this Ordinance shall be adjudged unenforce able or invalid,such judgment shall not affect,impair or invali date the remaining provisions of this Ordinance,it being the intention that the various provisions hereof are severable. Section 14.Repealer.All ordinances or parts thereof in conflict with this Ordinance are hereby repealed. Section 15.Ordinance Irrepealable.After said bonds are issued,this Ordinance shall be and remain irrepealable until said bonds and the interest thereon shall have been fully paid, satisfied and discharged. Section 16.Recording and Authentication.This Or dinance,immediately on its passage shall be recorded in the Town Book of Ordinances kept for that purpose,authenticated by the signatures of the Mayor and Clerk and shall be published as required by law. —12 — Section 17.Emerqency_Provision.By reason of the fact that the Town must immediately proceed to improve its exist— ing electrical system and that it is necessary to issue and sell bonds of the Town to pay the costs and expenses of improving the said system,which costs and expenses have and will hereafter become due and payable,and to allow the Town to take advantage of lo;i interest rates in the bond market,it is hereby declared that an emergency exists,that this Ordinance is necessary to the •i!tiediae preservation of the public peace,health and safety,and that it shall be in full force and effect upon publication. ADOPTED AND APPROVED This 25th day of January,1977. .2 S E A L ) _______________________________ Mayor —13 — It was then moved by Trustee and seconded by Trustee ______________________________ that all rules of this Board,which,unless suspended,might prevent the final passage and adoption of this Ordinance as an emergency ;:Sure at this meeting,be and the same are hereby suspended. The question being upon the adoption of said motion ai the suspension of the rules,the roll was called with the f-ilowinq result: Trustees:Robert Burgess H.Bernard Dannels Margaret Houston N.T.Petrocine Rollen Sutter Robert E.Wagner Those voting NO:____________________________________ £members of the Board of Trustees having voted in favor of said motion,the presiding officer declared the motion carried and the rules suspended. Trustee’” —________ ______ then moved tIt the Ordinance be passed and adopted as an emergency or— di.rance.Trustee S-77r seconded the mtion. The question being upon the passage and adoption of the Ordinance,the roll was called with the following result: Those voting YES: Trustees:Robert Burgess H.Bernard Dannels Margaret Houston N.T.Petrocine Rollen Sutter Robert E.Wagner Those voting NO:_________________________________________ The presiding officer thereupon declared that more than three—fourths of all the Trustees elected having voted in favor thereof,the motion was carried and the Ordinance duly passed and adopted as an emergency ordinance. —14 — .‘©. On motion duly adopted,it was ordered that the Ordi nance be numbered ‘?,and after approval by the Mayor,be published in the Estes Park Trail—Gazette,a newspaper of general circulation within the Town of Estes Park. ?‘fter consideration of other business to come before the Board of Trustees,the meeting was adjourned. (S E A L )y N’a yo r ATTEST —15 — STATE OF COLORADO (.)UNTY OF LARIMER )s. CWN OF ESTES PARK I,Dale G.Hill,Town Clerk of the Town of Estes Patk,Larimer County,Colorado,do hereby certify that the totegoing pages numbered 1 to 15,inclusive,constitute a true and crrect copy of the record of proceedings of the Board of Trustees o?the Town,taken at regular meeting thereof,held at the Town in Estes Park,Colorado,the regular meeting place of the Board,on Tuesday,the 25th day of January,1977,insofar as se.id proceedings relate to the passage and adoption of the Ordi— nnce therein set forth,concerning the issuance of Electric •Pvenue Bonds of the Town in the principal amount of $550,000. Tnat attached hereto is an Affidavit of Publication of said ordinance as passed and adopted by the Board of Trustees at sa}.d maetin;that the original Ordinance has been duly authenti— ced by the signatures of the Mayor and myself,as Clerk of the Town,sealed with the corporate seal of the Town,signed and recorded in the Book of Ordinances of the Town kept for that purpose in my office. IN WITNESS WHEREOF,I have hereunto set my hand and the seal of the Town of Estes Park,Colorado,this 25th day of January,1977. S E A L ) ______________________ Town Clerk —16 — 0 (Attach Affidavit of Publication of Ordinance No.377 ) —17 —