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Chapter XI

Borrowing Power

Section 11.1.  Limits of Borrowing Power.

       General obligation indebtedness of the City shall be incurred and limited as provided in Article XI of the Constitution of the State of Colorado; provided that in determining the limitation of the City's power to incur indebtedness there shall not be included indebtedness for the acquisition or extension of a water system and supply, public utilities, projects, enterprises, works or ways from which the City will derive revenue; and provided further, that no general obligation indebtedness shall be incurred without the vote of the qualified electors except for water purposes and except such indebtedness as may be incurred pursuant to Section 11.3 of this Charter.  Revenue bonds may be issued by the Council without the vote of the qualified electors.

       In addition, without the vote of the qualified electors,

(a)The Council shall have the power and it shall be its duty to refund all bonds and issues whenever the same is advantageous to the City.

(b)The Council shall have the power to issue special improvement district bonds.

(c)The Council shall have the power to issue bonds to finance the improvement or extension of a municipally owned and operated utility, or any other project, enterprise, works or ways, if said bonds shall be payable solely out of revenue to be derived from the operation of such utility, project, enterprise, works or ways.  The Council shall also be empowered to combine municipally owned and operated utilities, providing for their joint operation, and having so provided, may issue revenue bonds of such jointly operated utilities, pleading for the payment thereof the joint revenue of the utilities.  Such joint utilities revenue bonds may be issued to acquire, extend or improve one (1), or more, or all of the jointly operated utilities.

(d)The Council shall have the power to issue revenue bonds for any public purpose payable in whole or in part from the revenue to be derived from the operation of facilities to be acquired, constructed or improved with the proceeds of the bonds, or payable in whole or in part from the available proceeds of sales and use taxes which may be imposed pursuant to Chapter X of this Charter or which may be imposed by the State of Colorado, or any agency thereof, and made available to the City.  Such bonds shall not be considered indebtedness or general obligations of the City.

(e)The City may borrow funds for a period not to exceed (6) months, for the payment of current debts, operating expenses and progress payments under public contracts provided that the expenditure shall have been properly budgeted and funds appropriated therefor and provided further that the source of repayment of the funds so borrowed shall be previously invested City funds awaiting the maturity of such investments.  (As amended 11-4-75)

Section 11.2.  Bonds-Interest, Prepayment.

       (a)The terms and maximum interest rate of general obligation or revenue bonds or other like securities shall be fixed by the authorizing ordinance, and such securities shall be sold to the best advantage of the City.

       (b)Any bonds may contain provisions for calling the same at designated periods prior to the final due date, with or without the payment of a prior redemption premium.

Section 11.3.  {Installment, Lease Option Contracts.}

       The Council may enter into installment or lease option contracts for the purchase of property or capital equipment.  No such contract shall extend over a period greater than the estimated useful life of such property or capital equipment as determined by the Council, nor shall the total amounts of principal payable under all such contracts together with the total of all outstanding principal of general obligations indebtedness of the City exceed the amount limitations of this Charter applicable to general obligation indebtedness.

       All such deferred payments shall be included in the budget for the year in which the installment is payable.  (As amended 11-4-69, 9-24-74)