An ordinance relating to the issuance of general obligation water bonds of the Town of Deer Trail, Colorado, dated October 1, 1978, in the principal amount of $100,000, and declaring an emergency.
Whereas, the Town of Deer Trail, Colorado (the "Town"), has need for and desires to acquire, construct and install water system improvements and facilities in order to supply water to the Town and the inhabitants thereof; and
Whereas, pursuant to Colorado Constitution art. XI, §6 and §31-15- 302(d)(II), Colorado Revised Statutes, 1973, as amended, the Board of Trustees has determined, and does hereby determine, to issue at this time $100,000 principal amount of its general obligation water bonds for said purposes; and
Whereas, a proposal for the purchase of said bonds has been received from Boettcher & Company, Denver Colorado ("the Purchaser"), upon terms favorable to the Town, which the Board of Trustees has determined, and hereby does determine, to accept.
Now, therefore, be it ordained by the Board of Trustees of the Town of Deer Trail, Colorado, that:
Pursuant to Colorado Constitution art. XI, §6 and §31-15-302(d)(II), Colorado Revised Statutes 1973, as amended, and for the purpose of acquiring, constructing and installing water system improvements and facilities in order to supply water to the Town and the inhabitants thereof, together with all necessary and incidental costs, the Board of Trustees shall issue on behalf of the Town and upon the credit thereof its negotiable coupon General Obligation Water Bonds, dated October 1, 1978, in the aggregate principal amount of $100,000 (the "Bonds"), consisting of 20 bonds in the denomination of $5,000 each, numbered 1 to 20, inclusive, payable to bearer.
Said Bonds shall bear interest as evidenced by two sets of interest coupons payable to bearer attached thereto, with one of said sets designated "A" and the other supplemental set designated "B". Said Bonds shall mature serially in regular numerical order on October 1 of each year in the following amounts and years and shall bear interest at the rates shown in the following schedule:Bonds Numbered
(both inclusive)Principal Amounts Maturity Dates Per annum interest rate. A B 1 $5,000 1983 7.50% 1.70% 2 $5,000 1984 7.50% 1.70% 3 $5,000 1985 7.50% 1.70% 4 $5,000 1986 7.50% 1.70% 5 $5,000 1987 7.50% 1.70% 6 $5,000 1988 7.50% 1.70% 7 $5,000 1989 7.50% 1.70% 8 $5,000 1990 7.50% 1.70% 9 $5,000 1991 7.50% 1.70% 10 $5,000 1992 7.50% 1.70% 11 $5,000 1993 7.50% 1.70% 12 $5,000 1994 6.35% 1.70% 13 to 14 $10,000 1995 6.40% 1.70% 15 to 16 $10,000 1996 6.45% 1.70% 17 to 18 $10,000 1997 6.50% 1.70% 19 to 20 $10,000 1998 6.50% 1.70% Said "A" coupon interest shala be payable from October 1, 1978, to the maturity dates of the respective bonds, except if redeemed prior thereto, on April 1, 1979, and semiannually thereafter on the first day of October and the first day of April of each year.
Said "B" coupon interest shall be payable for the period from October 1, 1978, to October 1, 1979, only, on April 1, 1979, and October 1, 1979. If upon presentation at maturity payment of any Bond is not made as herein provided, interest shall continue thereon at the "A" coupon rate designated therein until the principal thereof is paid in full.
- The principal of and interest on said Bonds shall be payable in lawful money of the United States of America without deduction for exchange or collection charges at The First National Bank of Strasburg, in Strasburg, Colorado (the "Paying Agent"), who is hereby designated the paying agent for this bond issue.
The maximum net effective interest rate authorized for this issue is seven percent (7%).
The net effective interest rate on Bonds of this issue is 6.99%.
Said Bonds shall be general obligations of the Town and shall be payable from general ad valorem taxes, except as they may actually be paid from other revenues legally available therefor.
Bonds of this issue maturing on or before October 1, 1993, are not redeemable prior to their respective maturity dates. Bonds of this issue maturing in the year 1994 and thereafter are redeemable at the option of the Board of Trustees on October 1, 1993, and on any interest payment date thereafter, in inverse numerical order, at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date.
Redemption shall be made upon not less than thirty (30) days' prior notice by publication of such notice at least once in the Tr-County Tribune, Deer Trail, Colorado, if then in business and publishing, and if not, then in a newspaper of general circulation in the Town of Deer Trail, State of Colorado, and by sending a copy of such notice by certified or registered first-class postage prepaid mail at least thirty (30) days prior to the redemption date to the holders of each of the Bonds being redeemed if the names and addresses of such holders are recorded with the Town Clerk. For this purpose, the holder of any such Bond may at any time furnish his name and post office address to the Town Clerk. If this Bond shall have been duly called for redemption and if on or before the redemption date there shall be deposited with The First National Bank of Strasburg, in Strasburg, Colorado, sufficient funds to pay this Bond at the redemption price, then this Bond shall become due and payable upon such redemption date, and interest shall cease to accrue hereon after the redemption date. - Said Bonds shall be executed in the name and on behalf of the Town with the manual signature of the Mayor of the Town, shall bear the facsimile seal of the Town, and shall be attested by the facsimile signature of the Town Clerk of the Town, and each of said Bonds shall have attached thereto an appropriate number of interest coupons bearing the facsimile signature of the Mayor of the Town. Said coupons shall be numbered consecutively from one upwards for each Bond as appropriate. When issued as aforesaid as part of said Bonds, said coupons shall be the lawful binding promises and obligations of the Town according to their import, securing the payment of interest as it becomes due. Should any officer whose manual or facsimile signature appears on said Bonds or the interest coupons attached thereto cease to be such officer before delivery of the Bonds to the Purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes.
- Said Bonds and the interest coupons attached thereto shall be in substantially the following form:
[Form of Bond]
United States of America
State of Colorado
County of Arapahoe
Town of Deer Trail
General Obligation Water Bond
Number ____
$5,000
The Town of Deer Trail, in the County of Arapahoe, and State of Colorado, for value received, hereby acknowledges itself indebted and promises to pay to the bearer hereof the principal sum of
five thousand dollars
in lawful money of the United States of America, on the 1st day of October, 19__, with interest thereon from the date hereof to the maturity date hereof, except if redeemed prior thereto, as evidenced by interest coupons designated "A" hereto attached at the rate of ____ and ____ hundredths per centum (__.__%) per annum, payable April 1, 1979, and semiannually thereafter on the 1st day of October and the 1st day of April of each year, and additional interest thereon for the period from October 1, 1978, to October 1, 1979, only, as evidenced by supplemental interest coupons designated "B" hereto attached at the rate of one and seventy hundredths per centum (1.70%) per annum, payable April 1, 1979, and October 1, 1979. If upon presentation at maturity payment of this Bond is not made as herein provided, interest shall continue hereon at the "A" coupon rate designated herein until the principal hereof is paid in full. The principal of and interest on this Bond are payable without deduction for exchange or collection charges at The First National Bank of Strasburg, in Strasburg, Colorado, upon presentation and surrender of said coupons and this Bond as they severally become due. Bonds of this issue maturing on or before October 1, 1993, are not redeemable prior to their respective maturity dates.
Bonds of this issue maturing in the year 1994 and thereafter are redeemable at the option of the Board of Trustees on October 1, 1993, and on interest payment dates thereafter, in inverse numerical order, at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date.
Redemption shall be made upon not less than thirty (30) days' prior notice by publication of such notice at least once in the Tr- County Tribune, Deer Trail, Colorado, if then in business and publishing, and if not, then in a newspaper of general circulation in the Town of Deer Trail, State of Colorado, and by sending a copy of such notice by certified or registered first-class postage prepaid mail at least thirty (30) days prior to the redemption date to the holders of each of the Bonds being redeemed if the names and addresses of such holders are recorded with the Town Clerk. For this purpose, the holder of any such Bond may at any time furnish his name and post office address to the Town Clerk. If this Bond shall have been duly called for redemption and if on or before the redemption date there shall be deposited with The First National Bank of Strasburg, in Strasburg, Colorado, sufficient funds to pay this Bond at the redemption price, then this Bond shall become due and payable upon such redemption date, and interest shall cease to accrue hereon after the redemption date.
This Bond is one of a series issued by the Board of Trustees of the Town of Deer Trail, Colorado, on behalf of said Town and upon the credit thereof for the purpose of acquiring, constructing and installing water system improvements and facilities in order to supply water to the Town and the inhabitants thereof, together with all necessary and incidental costs, by virtue of and in full conformity with the Constitution of the State of Colorado, part 3 of article 15 of title 31, Colorado Revised Statutes 1973, as amended, and all other laws of the State of Colorado thereunto enabling, and pursuant to an Ordinance of said Town duly adopted and made a law of said Town prior to the issuance of this Bond; and it is hereby recited, certified and warranted that all the requirements of law have been fully complied with by the proper officers of said Town in issuing this Bond.
It is further hereby recited, certified and warranted that the total indebtedness of said Town, including that of this Bond, does not exceed any constitutional or statutory limitation of the State of Colorado; and that provision has been made for the levy and collection of a direct annual tax on all the taxable property within said Town sufficient to pay the interest on and the principal of this Bond as the same respectively become due.
The full faith and credit of the Town of Deer Trail, in the County of Arapahoe and State of Colorado, is hereby pledged for the punctual payment of the principal of and the interest on this Bond.
In testimony whereof, the Board of Trustees of the Town of Deer Trail, Colorado, has caused this Bond to be executed in the name and on behalf of said Town with the manual signature of the Mayor of said Town, to be sealed with the facsimile seal of said Town, to be attested by the facsimile signature of the Town Clerk of said Town, and has caused the interest coupons attached hereto to be executed with the facsimile signature of the Mayor of said Town, all as of the 1st day of October, 1978.
Town of Deer Trail, Colorado
By:____
Attest: ___, Town Clerk
[Interest Coupon Form]
Number ____
$ ____
April
On the 1st day of October, 19 , unless the Bond to which this coupon is attached, if redeemable, has been called for prior redemption, the Town of Deer Trail, in the County of Arapahoe and State of Colorado, will pay to bearer the amount shown hereon in lawful money of the United States of America, without deduction for exchange or collection charges, at The First National Bank of Strasburg, in Strasburg, Colorado, being interest then due on its General Obligation Water Bond, dated October 1, 1978, bearing
Number ____
(Facsimile Signature)
Mayor, Town of Deer Trail, Colorado
[End of Interest Coupon Form] - Said Bonds, when executed as provided by law, shall be delivered by any one of the officers of the Town to the Purchaser, upon payment to the Town in accordance with the contract of purchase for
the Bonds between the Town and the Purchaser. The proceeds derived from said Bond sale shall be used exclusively for the purpose stated herein, provided, however, that any portion of the Bond proceeds may be temporarily invested pending such use in securities or obligations which are lawful investments for the Town, with such temporary investment to be made consistent with the covenant hereinafter provided concerning arbitrage bonds. Neither the Purchaser of said Bonds nor the holder of any of them shall be in any way responsible for the application of the proceeds of said Bonds by the Town or any of its officers. - If required, the interest or principal to become due on said Bonds in 1979 shall be advanced from any revenues or funds of the Town lawfully available therefor. For the purpose of reimbursing any such
advance and also for the purpose of paying the interest on and principal of said Bonds as the same become due and payable the Board of Trustees shall annually fix and certify a rate of levy for ad valorem taxes to the Board of County Commissioners of Arapahoe County, Colorado, which taxes, in addition to all other taxes, when levied on all of the taxable property in the Town, in each of the years 1978 to 1997, inclusive, will raise ad valorem tax revenues sufficient to make such reimbursement and to meet promptly and make such Bond principal and interest payments as the same become due. In the event any of said levies shall fail to produce an amount sufficient to pay the interest on and the principal of the Bonds becoming due in the next succeeding year, the deficit shall be made up in the next levy, and taxes shall be made and continue to be levied until said Bonds and the interest thereon shall be paid in full.
Said taxes when collected shall be applied solely for the payment of the interest on and principal of said Bonds, respectively, until the Bonds, both as to principal and interest, shall be fully paid, satisfied and discharged; provided, however, that nothing herein contained shall be so construed as to prevent the Town from committing and applying any other funds or revenues that may now or hereafter be in the treasury of the Town and legally available for the purpose of payment of the interest on or principal of said Bonds, and upon the application of any other such funds or revenues as aforesaid, the levy or levies for ad valorem taxes herein provided may thereupon be diminished to the extent the requirements for such Bond and interest payments for the particular year are thereby diminished - Notwithstanding the foregoing provisions for tax levies, the Town covenants and agrees that it will, to the extent necessary or permitted by law, prescribe, revise, and collect in advance or otherwise, from any consumer or any owner or occupant of any real property connected therewith or receiving service therefrom, rates, fees, tolls, and charges or any combination thereof for the services furnished by, or the direct or indirect connection with, or the use of, or any commodity from its water facilities including, without limiting the generality of the foregoing, minimum charges, charges for the availability of service, tap fees, disconnection fees, reconnection fees, and reasonable penalties for any delinquencies, which together with said tax levies and all other revenues of the Town, shall be sufficient to pay the costs of operating and maintaining the water system and to pay the interest on and principal of said Bonds as the same respectively become due.
- Any provision of this Ordinance to the standing, the Town may issue additional bonds or securities payable from general ad valorem taxes the water system having a lien on said taxes or revenues or both such taxes and revenues on a parity with or subordinate to, but not prior or superior to, the lien thereon of the Bonds authorized herein.
- The Town covenants with the holders of the Bonds that it will make no use of the proceeds of such Bonds at any time during the term thereof which, if such use had been reasonably expected on the date the Bonds are issued, would have caused such Bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and the regulations proposed thereunder by the United States Treasury Department, unless, under any provision of law hereafter enacted, the interest paid on the Bonds (a) shall be excludable from the gross income of a recipient thereof for contrary not with other additional or the revenues of federal income tax purposes without regard to whether or not such Bonds are arbitrage bonds, or (b) shall be exempt from all federal income taxation.
- The sums hereinbefore provided to meet the interest on said Bonds and to dischage the principal thereof, when due, are hereby appropriated for that purpose, and said amounts for each year shall be
included in the annual budget and the appropriation ordinance or measures to be adopted or passed by the Board of Trustees of the Town in each year respectively while any of the Bonds herein authorized, either as to principal or interest, are outstanding and unpaid. No provisions of any constitution, statute, charter, ordinance, resolution, or other order or measure enacted after the issuance of the Bonds herein authorized shall in any manner be construed as limiting or impairing the obligation of the Town to levy ad valorem taxes, without limitation of rate or amount, for the payment of the principal of and interest on the Bonds herein authorized.
It shall be the duty of the Board of Trustees annually at the time and in the manner provided by law for levying other Town taxes, if such action shall be necessary to effectuate the provisions of this Ordinance, to ratify and carry out the provisions hereof with reference to the levy and collection of the ad valorem taxes herein specified, and to require the officers of and for the Town to levy, extend and collect said taxes in the manner provided by law for the purpose of providing funds for the payment of the principal of the Bonds authorized herein and the respectively, become for and applied only of said defects interest accruing due. Said taxes, to the payment of thereon promptly as the same, when collected, shall be kept the interest on and principal Bonds as hereinbefore specified. - The Board of Trustees hereby determines that because of in the Town's water system, water pressure and supply are insufficient to provide adequate fire protection for the Town and its inhabitants, and therefore it is necessary to the immediate preservation of the public health and safety to issue the Bonds forthwith pursuant to this emergency ordinance in order to provide funds to acquire, construct and install water system improvements and facilities in a timely manner for the purpose of ensuring that the Town and the inhabitants thereof are provided with sufficient fire protection capability.
- All action heretofore taken by the Town and by the officers thereof not inconsistent herewith directed toward the authorization of bonds for the aforementioned purposes is hereby ratified, approved and
confirmed. - Pursuant to the Uniform Facsimile Signature of Public Officials Act, part 1 of article 55 of title 11, Colorado Revised Statutes 1973, as amended, the Mayor and the Town Clerk of the Town shall forthwith, but in any event prior to the delivery to the Purchaser of the Bonds authorized herein, file with the Colorado Secretary of State a Facsimile Signature Certificate bearing their manual signatures certified by them under oath.
- The officers of the Town are hereby authorized and directed to enter into such agreements and take all action necessary or appropriate to effectuate the provisions of this Ordinance and to comply with the requirements of law, including without limiting the generality of the foregoing:
- The printing of the Bonds herein authorized including at the option of the Board the printing upon each of such Bonds of a copy of the approving legal opinion of Messrs. DeMuth, Eiberger, Kemp & Backus, bond counsel, duly certified by the Town Clerk; and
- The preparation of a bond offering brochure, official statement, or offering circular, if any such is to be prepared, for the use of prospective purchasers of the Bonds, including, without limitation, the Purchaser and its associates, if any; and
- The execution of such certificates as may reasonably be required by the Purchaser relating to the signing of the Bonds; the tenure and identity of the Town officials; the assessed valuation and indebtedness of the Town; if in accordance with the facts the absence of litigation, pending or threatened, affecting the validity of the Bonds; receipt of the bond purchase price; and the accuracy and completeness of any bond offering materials prepared; and
- The making of various statements, recitals, certifications and warranties provided in the form of Bond set forth in this Ordinance; and
- The payment of the interest on the Bonds as the same shall accrue and the principal of said Bonds at maturity or upon prior redemption without further warrant or order.
- All acts, orders, resolutions, ordinances, or parts thereof, taken by the Town and in conflict with this Ordinance are hereby repealed, except that this repealed shall not be construed so as to revive any act, order, resolution, ordinance, or part thereof, heretofore repealed,
- This Ordinance, is, and shall constitute, a legislative measure of the Town, and after the Bonds hereby authorized are issued, sold, and outstanding, this Ordinance shall constitute a contract between the Town and the holder or holders of said Bonds, and shall be and remain irrepealable until said Bonds and the interest accruing thereon shall have been fully paid, satisfied and discharged.
- If any paragraph, clause or provision of this Ordinance is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining paragraphs, clauses or provisions hereof, the intention being that the various paragraphs, or provisions hereof are severable.
- This Ordinance shall take effect immediately upon adoption.
Introduced, read in full, adopted and ordered published once in full this 19th day of September, 1978.
James W. Rossi, Mayor
Town of Deer Trail
Attest: Vera L. Norris