HomeMy WebLinkAboutORDINANCE 225//A:••—“•-
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WHEREAS,the Town of Estes Park has heretofore acquired
and is now opecating a municipal electric light and power system
(herein called the t’System”);and
WHEREAS,it is necessary to improve and extend the
System,and for such ruroe to issue bonds payable out of the
revenues to be derived from the operation of the System;and
WHEREAS,by ürinance No.100 of *aid Town,adopted
and arovcd on November 4,1944,the Town authorized and there
were issued $250,000 of Electric Light and rower Revenue Bonds of
the Town,dated November 1,1944,of which amount $55,000 are
now oitstanding;and
WHEREAS,by Ordinance No.113 of said Town,adopted on
August 25,1947,the Town authorized and there wore issued
$110,000 of Electric Light and rower Revenue Bonds,Series A,1947,
dated September 1,1947,of which amount $28,000 are now outstand
ing;and
WHEREAS,by Ordinance No.114 or said Town,adopted on
August 25,1947,the Town authorized and there were issued
$40,000 of Electric Light and Power evenue Bonds,Series B,1947,
the total amount of which,both principal and interest,have been
fully paid and discharged;and
WHEREAS,said r nce Nos.100 and 113 provide that nc
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ORDINANCE NO.2—S
AN ORDINANCE AUTHOJZING THE ISSUANCE OF
BONDS OF ThE TOW1 OF ESTES PARK,COLORADO,
IN A PRINCIPAL AMOUNT OF $200,000,FOR ThE
PURPOSE OF flIPROVIDG AND ETENDING THE
ELECTRIC LIGHT AND POWER SYSTEM OF SAID
TOWN,SUCH BONDS AND THE INTEREST THEREON
TO BE PAYABLE SOLELY FROM THE NET INCOME
OF SUCH SYSTEM;PROVIDING FOR THE PA’NENT
OF SUCH BONDS AND THE INTEREST THEREON;
AND DECLARING AN EMERGENCY.
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additional bonds payable from the income of the System constitut
ing a lieu upon such income on a parity with the lien of the bonds
dated November 1,l944,and September 1,1947,shall be issued urr
less the earnings of the System for the preceding fiscal year
shall have been sufficient to pay the average annual cost of opera
tion and maintenance and,in addition,sufficient ID pay 175%of
the maximum amount of principal and interest on said Revenue Bonds
dated November 1,1944,and September 1,1947,becoming due dur
ing any ensuing year,and a sum equal to the maximum amount of
principal and interest falling due in any one year on such addi
tional bonds;and
WHEREAS,the revenues of the System for the fiscal year
1961 were sufficient to permit the issuance of additional revenue
bonds in the principal amount of $200,000;
NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF TRUSTEES
OF THE TOWN OF ESTES PARK,IAPJMER COUNTY,COLORADO:
Section 1.The Town of Estes Park,Colorado,shall im
prove and extend the System in accordance with plans an.d speci -
fications prepared theref or.
Section 2.For such purpose it is hereby declared nec
essary that the Town of Estes Park issue its revenue bonds in the
principal amount of $200,000,oayable solely out of the net in
come and revenue to be derived from the operation of the System
of said Town,and that said Town pledge,irrevocably,such income
to the payment of such bonds and interest thereon,the proceeds
of such bonds to be used solely for said purpose.
Section 3.For said purpose,Electric Light and Power
evenue Bonds,Series 1962,of said Town are hereby authorizeJ to
be issued in the rincipal amount of $200,000.Said bonds shall
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Amount Iaturity interest nate
$2,000 1964 3—l,/Z
17,000 1965 and 1966 3l/2,
21,000 1967 3—3A3
26,000 1968 3_5/3
27,000 1969 35/’
23,000 1970
30,000 1971 3—/D
32,000 1972 3_5/8
Said bonds shall be payable,principal and interest,
in lawful money of the United States of America,at the office of
the Town Treasurer,in Estes ;ar,Colorado;shall be negotiable
coupon bonds payable to bearer;sall be signed by the Jayor and
Trea3trr and attested by the Clerk of said Town with the seal
of said Town of Estes Park affixed thereto,and the interest cou
pons tuc:’rto attached shall be authenticated by the facsimile sir..
nature of the Town Treasurer.Should any officer whose signature
or facsimile siature aprors on said bonds or the coupons ther—
to attached cease to be such officer before delivery of the bonds
to the purchaser,such signature or facsimile signature shall
nevertheless be valid and sufficient for all purposes.
Section 4.Said bonds and the coupons thereto attached
and each of them shall be in substantially the following form:
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be dated February 1,1962,shall consist of 200 bonds in the e
nomination of $1,000 each,nurhered 1 to 200,inclusive,shall
sear interest payable semi-armually on the 1st day of February
and the 1st day of August each year,and shall mature on February
1,as follows:
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UNITED STATES OF AI4ERICA
STATE OF COLORADO COUNTY OF LARIMER
TOWN OF ESTES PARK
ELECTtLIC UGWI’AND PCMER REVENUE BOND
SERIES 1962
No.
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$1,000
The Town of Estea t County of Larimer and
State of Colorado,hereby acknowledges itself indebted and for
value received promises to pay to the bearer out of the special
fun4 hereinafter mentioned,but not otherwise,
ONE THOUSAND DOLLARS
on the 1st day of February,19__,and to pay interest thereon at
the rate of
___________________________
per centum C________
per annum,payable semi-annually on the 1st day of February and
the 1st day of August,upon surrender of the annexed coupons and
this Bond,as they severally b.eome due.Both Drineipal of and
interest on this Bond shall be payable in lawful nouey of the
United States of LneTica,at the office of the Town Treasurer,in
Estee ?ark,Colorado.
Payment of this Bond and the interest thereon shall be
ciade sol..ly from,and as security for such payment there is pledg
.4 a special fund created by Ordinance No.tOO,adopted on the
4th day of November,1944,authorizing Electric Light and Power
Revenue Bonds of the Town dated November 1,1944,made applicable
to the payment of Electric Light and Power Revenue Bonds,Series
A,1947,dated Septeitber 1,1947,authorized by Ordinance No.113
of said Town,adopted August 25,1947,and also mada applicable
to the payment of the Bonds of this Series 1962 by Ordinance No.
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adopted
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1962,and identified as “Estee
Park Electric TA&ht and Power Revenue Bond Sinking Fund”,into
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which the Town of Estee Park covenants to pay from the revenues
be derived from the operation of its electric light and power sys
tem,after provision only for all Teasonable expenses of opera
tion and maintenance as provided in said Ordinances,sinus sffi
cient to pay,when due,the principal of end itterest on the
Electric Light and Power Revenue Bonds of the Town dated November
1,1944 and September 1,1947,and the Bonds of the Series 1962
issue of which this is one,and to create and maintain reasonable
reserves for such purpose,and the Town of Estes Park agrees with
the holder of this Bond and with each and every person who may
become the holder hereof,that it will keep and perform all the
covenants of said Ordinances.
This Bond is issued for the purpose of providing funds
to improve and eztend the electric light and power system of said
Town and is issued in strict compliance with the Constitution and
Laws of the State of Colorado.
This Bond does not constitute an indebtedness of the
Town of Estea Park within the meaning of any constitutional or
statutory limitation,but is payable solely from the special
Fund hereinabove mentioned.
It is hereby certified that all conditions,acts and
things required by the Constitution and Laws of the State of Cob.
rado to exist,to have happened and to have ban per formed,pro
cadent to and in the issuance of this Bond,exist,have happened
and have been performed,and that the issue of bands of which
this is one,together with all other indebtedness of said Town of
Estes Park,is within every debt and other limit prescribed by
the Constitution and Laws of the State of Colorado.
IN WITNESS WHEREOF,the Town of Estea Park,Colorado,
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has caused this Bond to be signed by its Nayor arid Treasurer,
sealed with its corporate seal,attested by its Clerk,and the
coupons hereto annexed to be signed with the facsimile signature
of the Town Treasurer,this 1st day of February,1962.
—::j-b sign)
iiayor
C S E A L )
_____________________________
-Treasurer
—ATTEST:
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(Forra of Coupon)
No.$
On the 1st day of T)CLiy,19_,the Town of Estes
‘i?ark,in the County of Lariraer and State of Colorado,will pay
to the bearer hereof
-DOLLARS
in lawful money of the United States of America,at the office
f the Town Treasurer,in Estes lark,Colorado,such payment to
e made solely froui the fund designated in the Bond to which this
oupou is attached,being six months’interest on its Electric
igbt and Tower Revenue Bond,Series 1962,dated February 1,1962,
ear lug
o.
(Facsimile S4nature)
Town Treas1ir.r
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Section 5,Said bonds shall be sold for cash and the
proceeds thereof shall be deposited in a special account and shalt
be applied on orders of the Board of Trustees of said Town,soleiy
in improving and extending the municipal light arid power system
of 3aid Town,but neither the purchaser of said bonds nor any
subsequent holder of any of then shall be required to see to the
application of the proceeds thereof.
Section 6.The Board of Trustees of said Town shall
establish,maintain and enforce such rates for services rendered
by the System as shall create an income sufficient to pay all,rea
sonable expenses of maintenance and operation thereof and create
net revenues which shall be sufficient to pay all amounts required
by said Ordinances Nos.100 and 113,and the principal of and in
terest on this Series 1962 issue of bonds,promptly as the same
become due,and to accumulate the P.eserve Fund hereinater describ
ed,and it shall be its duty to establish,maintain and enforce
such rates continuously until all of the bonds dated November 1,
1944,September 1,1947,and this Series 1962 issue and the inter
est thereon have been fully liquidated.
Section 7.fter providing for operation and mainten
ance of the System,as provided by said Ordinances Nos.100,113
and this Ordinance,there shall be placed in the Estes Park Elec
trio Light and Power Revenue Bond Sinking Fund,the amounts re
quired to pay orincipal of,interest on and a reserve fund for
said bonds dated flovember 1,1944,and September 1,1947,as pro
vided by said Ordinances Nos.tOO and 113,and in addition,there
tc,in monthly installments,amounts which shall be sufficient
promptly to pay the interest on and principal of the Series 1962
Bonds,herein authorized,as the same become due and payable.
Also,cotDmencing not later than February 1,1963,there shall be
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placed in said Bond Sinking Fund not less than $6,300 per year
until there shall be accumulated there:Ln as a Reserve Fund the sum
of $31,500.After paying in full the principal of and interest
on the outstanding Electric Light and Power Revenue Bonds of the
Town dated November 1,1944,any surplus remaining after the pay-
merits specified in this Secticn 7 may be used or applied as di
rected by the Board of Trustees of said Town.
Section 8.Nothing in this Ordinance contained shall
be conatrued in such a manner as to prevent the issuance by the
Town of stes 1ar.c of additional bonds payable from the income de—
rived from the operation of the System and constituting a lien
upon the said revenues on a parity with the lien of the bonds here
in authorized;provided,however,that before any such additional
bonds are authorized or actually issued,annual earnings derived
from the operation of the System for the fiscal year preceding the
date of authorization and issuance shall have been sufficient to
pay the average annual cost of operation and maintenance and in
addition,sufficient to pay an amount represented by 175%of the
following:(a)a sum sufficient to pay the maximum amount of rin
cipal and interest on the Electric Light and Power evenue Bonds
of the Town dated November 1,1944,September 1,1947,and the
eries 1962 Bonds dated February 1,1962,becoming due during any
ensuing fiscal year,and (b)a sum equal to the average amount of
rincipal and interest falling due in any one year on the addi
lonal bonds proposed to çjued.In tcz.nIng .;ihether addi
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±ona].bonds may be issued as aforesaid,consideration shall be
iven to any probable reduction in operating or maintenance ex
enses that will result from the expenditure of the funds proposed
bo be derived from the issuance and sale of said bonds.Nothing
ierein contained shall be so construed to prevent the Town of
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Estes Park from issuing bonds other than those hereby authorized,
payable from the annual revenues of the System but constituting
a lien inferior to the lien created for the payment of the bonds
dated November 1,1944,September 1,1947,and February 1,1962.
Section 9.(a)That while the Bonds hereby authorized
remain outstanding and unpaid,the rates for all services render
ed by said Electric Light and Power System to said Town,and to it
inhabitants,and to all consumers within or without the boundaries
of said Town,shall be reasonable and just,taking into account
and consideration the cost and value of said System and the cost
of maintaining and operating the same,and the proper and neces
sary sUowances oi’the depreciation and the amounts necessary for
the rtirenrent of all bonds and the accruing interest thereon,
and thero shall be charged against all users of electric current
such rates and amounts for service as shall be adequate to meet thi
requirements of this Section and the preceding Sections hereof.
(5)Should the Town of Estes Park elect to use
said electric light and power system to supply electric current
for municipal light and power purposes,the Town shall at all
times so long s any Electric Light atid Power Revenue Bonds renain
outstanding and unpaid,pay a reasonable amount for all light and
power service actually rendered to the Town or its agencies,as
such services accrue and as may be fired by the Board of Trustees.
Section 10.That the Town of Estes Park hereby cove
nants and agreed as follows:
(a)That so long as any Electric Light and Power
Revenue Bonds rc.main outsta:Lding,the Town will maintain said
electric light and power system in good condition and operate the
same in an efficient manner and at reasonable cost;
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(b)That the Town will maintain insurance on said
System for the benefit of the holder or holders of said bonds,of
a kind and in an amount which would normally be carried by private
companies engaged in a similar type of business.All premiums and
all costs or charges incurred in connection with or by reason of
such insurance shall be paid out of the revenue derived from the
operation of said system and in no event shall the same be a
charge against the general funds of the Towrc.The proceeds of any
such insurance received by the Town by reason of injury to or de—
Stuction of,or partial destruction oI said system or any part
thereo,shall be used to repair or replace that part or parts of
said system so injured or destroyed,or,if not so used,shall be
placed in and be subject to the provisions of the Bond Sinking
Fund hereinbefore created;
Cc)That nothing herein shall be construed so as
to require the Town to expend any funds which are derived from
sources other than the operation of said utility (except as per
mitted under the provisions of Section 9(b)to pay from its
general fund the fair value of all services furnished the Town by
means of said system);
(d)That the Town will keep proper books,records
and accounts separate from other records and accounts,in which
complete and correct entries shall be made of all transactions re
lating to the electric light and power system owned and operated
by the Toun.The Town will furnish to any holder of any Electric
Light and Power evenue Bonds,upon written request,after the
close of each fiscal year,complete operating and income state
ments of the electric light and power system,in reacona:le de
tail,covering such fiscal year;and
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Ce)That the holder or holders of tw t—five per
cent in aggregate principal amount of Bald Revenue Bonds at any
time outstanding shall have the right to be exercised by their
duly designated agent at aU reasonable times to inspect the Jys
tern and alt rorJs,accounts and data of the Town of ‘stes .cr:
relating thereto,and,upon request,the Town of Estes Park will
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furnish to such bondholders financial statements and other Inf or
mation relating to the Town of Estes Park and its electric tight
and power system as such holder or holders may Eroi time to time
reasonably require.
section U.That the Town will faithfully and punctual
ly perform alt duties with respect to said elctri light and
power system rc;ui’e by the Constitution and Liws of the 3tate
of Colorado arid the laws of the Town of Estes Park,including the
making and collecting of reasonable and su:ficient rates for ser
vice rendered by said :ystem as hereinbefore rovic,and will
apply said revenues to the respective funds ceated by ordinances
Nos.100,113 and by this Crdinance;that the Town will not sell,
lease,mortgage or in any manner encumber of dispose of said elec
tric light and power systeru or ai-iy part thereof,Including any and
all extensions and additions thereto or betternents thereof that
may be made,until all of the said Revenue Bonds shall have been
paid in .u11,5oth principal and interest,and the Town further
covenants and nrces that it will,continuously operate said System
so that the gross revenues wifl at all times be sufficient to pro
vide for the payment of the operation anä maintenance thereof
and to maintain the sinking Fund as herein provided.Any holder
of any one CT more of said bonds or an of the coupons represent
ing interest thereon,may,either at law or in equity,by suit,
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action,riandaraus or other appropriate proceeding in any Court of
competent jurisdiction,protect the lien created by Ordinances
Nos.100,113 and this .rnance on the revenues of said electric
light and power syster.,and may by suit,action,mrnidamus or other
appropriate proceeding or proceedings,enforce and compel the per
formance of any duty imposed upon said Town by the provisions of
said Ordinances,including the making and collecting of sufficient
rates and charges and the segregation of the income and revenues
of said System and the proper application thereof.
The Town :urthe.r covenants and agrees if any de
fault be made in the payment of the principal of or the interest
upon any of said bonds,then,upon the commencing of suit by any
holder of said bonds or coupons,any Court having jurisdiction of
such action nay appoint a receiver to administer said System on
behalf of the Town,with power to charge and collect rates suffi
cient to provide for the payment of all bonds and obligations out
standing against said systeL,and for the payment of all operating
expenses,and to apply the income and revenues derived from the
operation of said system in conformity with the provisions of
said Ordinances.
Section 12.That no obligation imposed upon the Town of
Estes Park by any provision of Ordinances Nos,100,113 or this
dinance shall constitute an indebtedness of the Town within the
arg of any constitutional or statutory limitation,but every
uch obligation shall be discharged solely out of the special
fund created anJ composed of the net earnings and revenues derived
y the Town om the operation of the municipal electric light
nd power system owned and operated by the Town.
Section 13.That if any section,paragraph,clause or
rovision of this Ordinance shall,for any reason,be held to be
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invalid or unenforceable,the invalidity or unenforceability of
such section,paragraph,clause or provision shall not affect any
of the r.a.i:i provisions of this Ordinance.
Section 14.All ordinances or parts thereof in conflict
with this Ordinance,are hereby repealed.After said $eries 1962
Bonds have been issued,this Ordinance shalt be irrepealable until
said Bonds and the interest thereon shall be fully paid,satisfied
and discharged in the manner herein provided.
Section 15.By rason of the fact that said Town and
its inhabitants are not aieqtately or properly supplied with elec
trio lit and ocr,it is declared that an emergency exists,
that this Ordinance is necessary to the immediate preservation of
the ‘uhlic peace,health and safety,atd that it shall be in full
force and effect five days after its publication.
ADO1rED AND APPROVED,This /—day of
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1962.
C S E A L )
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