CT2017-917 Contract - Laserfiche WebLink

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"Reserve Account" means a special account of the City designated as the "2016 CWCB Note Reserve Account,"created by this Ordinance for the purpose of paying, if necessary, the principal of and interest on the Promissory Note. "State"means the State of Colorado. "Subordinate Lien Obligations"means one or more series of additional bonds,notes,interim securities or other obligations issued by the City having a lien on the Net Revenue which is subordinate or junior to the lien of the Promissory Note. "Supplemental Public Securities Act"means Part 2 of Article 57 of Title 11, C.R.S. "System" means all of the City's water and sewer facilities and properties, now owned or hereafter acquired, whether situated within or without the City boundaries, including all present or future improvements, extensions,enlargements,betterments,replacements,or additions thereof or thereto. "Water Activity Enterprise" means the City of Lamar Water Activity Enterprise which has been reestablished pursuant to Ordinance No.992 the provisions of the Water Activity Law,and the operation of which is accounted for in the Water Activity Enterprise Fund. "Water Activity Enterprise Fund" means the City's Water Fund and the City's Sewer Fund, which are used to account for the financial operations of the Water Activity Enterprise,and any additional funds established hereafter for such purpose. "Water Activity Law"means Title 37,Article 45.1,C.R.S. Section 2. Approval of Loan Agreement and Authorization of Promissory Note. Pursuant to and in accordance with the State Constitution and the Enabling Law, there is hereby authorized and approved the execution of the Loan Contract. There shall be issued by the City, acting and through its Water Activity Enterprise, the Promissory Note in the aggregate principal amount not to exceed $101,000, for the purpose of paying the Project Costs and other costs in connection with the Promissory Note. All covenants, statements, representations and agreements contained in the Loan Contract and the Promissory Note are hereby approved and adopted as the covenants, statements, representations and agreements of the City. The accomplishment of the Project is hereby authorized,approved and ordered and it is hereby determined that the Promissory Note matures at such time not exceeding the estimated life of the Project. Section 3. Form of Promissory Note. The Promissory Note shall b .in substantially the form set forth in Appendix 2 to the Loan Contract with such changes thereto,not inconsistent herewith,as may be necessary or desirable and approved by the officials of the City executing the same (whose manual or facsimile signatures thereon shall constitute conclusive evidence of such approval). The interest rate authorized for the Promissory Note is 1.95% per annum (and the maximum net effective interest rate shall not exceed 3.0% per annum), exclusive of any late charges of 2.50%of the annual payment due which may be imposed pursuant to the terms of the Loan Contract for any late payments. Section 4. Fund and Accounts. a) Water Activity Enterprise Fund. There is hereby reaffirmed the Water Activity Enterprise Fund and there is hereby established the following accounts of the Water Activity Enterprise Fund, which shall be maintained by the City in accordance with the provisions of this Ordinance:the Project Account;the Note Account; and the Reserve Account. The City shall keep proper books of record and accounts showing complete and correct entries of all transactions relating to the funds and accounts referred to herein and in such manner that the Gross Revenue and the Net Revenue may at all times be readily and accurately determined. b) Project Account. All moneys received from CWCB under the Loan Contract shall be credited to the Project Account shall be applied solely to the payment of the Project Costs. Upon the determination of the Council that all Project Costs have been paid or are determinable,any balance remaining in the Project Account(less any amounts necessary to pay Project Costs not then due and owing)shall be applied solely in accordance with the terms of the Loan Contract,including without limitation provision A(5)thereof c) Note Account. Moneys in the Note Account shall be used solely for the purpose of paying the interest on and principal of the Promissory Note. Upon the determination by CWCB that the Project is substantially complete the City shall, or before the last day of each month, credit to the Note Account from the Net Revenue an amount equal to the Pro Rata Portion of the interest and principal to come due on the Promissory Note on the next succeeding Payment Date. In the event of insufficient Net Revenue,moneys shall be first applied to the payment of interest. Moneys in the Project Account also may be used to pay the interest accruing under provision A(4)of the Loan Contract prior to the completion of the Project. To the extent that moneys are not used from the final disbursement of loan funds pursuant to provision A(4) APPEINDIX 5