Laserfiche WebLink
Colorado Water Conservation Board <br /> City of Walsenburg, Colorado <br /> November 1, 2018 <br /> Page 2 <br /> Security Agreement, that the CWCB has all the requisite power and authority to authorize, <br /> execute and deliver, and has duly authorized, executed and delivered the Loan Contract and the <br /> Security Agreement, the Loan Documents constitute legal, valid and binding obligations of the <br /> Borrower enforceable in accordance with their respective terms. <br /> 3. The Borrower was established as a water and sewer activity enterprise <br /> pursuant to the provisions of C.R.S. 37-45.1-101, et. Seq., and is operated as a water and sewer <br /> activity enterprise pursuant to the provisions of C.R.S. 37-45.1-101, et. seq., and is a government- <br /> owned business authorized to issue its own revenue bonds and received fewer than 10% of annual <br /> revenue in grants from all Colorado state and local governments combined within the meaning of <br /> Article X, Section 20 of the Colorado Constitution ("TABOR"). <br /> 4. There are no provisions of the Colorado Constitution or any other state or <br /> applicable and binding local law that prevent the Loan Documents from binding the Borrower; the <br /> execution and delivery of the Loan Documents are not subject to the limitations of TABOR <br /> because the Borrower constitutes an enterprise under TABOR as of the date hereof. The <br /> performance of the obligations of the Borrower under the Loan Documents is not subject to the <br /> limitations of TABOR as long as the Borrower continues to qualify as an enterprise under <br /> TABOR. If the Borrower ceases to qualify as an enterprise under TABOR, the Loan Documents <br /> will continue to constitute legal, valid and binding obligations of the Borrower enforceable in <br /> accordance with their respective terms subject to the revenue and spending limitations of <br /> TABOR; provided, however, that if the Borrower at any time ceases to qualify as an enterprise <br /> under TABOR, (a) the Borrower may impose any increased fees, rates and charges of the water <br /> system without voter approval; (b) all revenues of the Borrower used to pay Loan Payments are <br /> to be included in the City fiscal year spending limit under Section 7(d) of TABOR, except that <br /> creation of bonded debt increases fiscal year spending by the amount of debt service so funded <br /> and debt service changes and reductions are exceptions to, and not part of, the City revenue and <br /> spending base and limits; and (c) if the City is required to reduce spending in order to comply <br /> with its fiscal year spending limit under Section 7(b) of TABOR, the City will first be required to <br /> reduce spending for purposes for which it does not have an obligation under law or by contract <br /> prior to reducing spending required to comply with the other covenants contained in the Loan <br /> Documents. <br /> The opinions expressed in this opinion letter are subject to the following: <br /> The obligations of the Borrower pursuant to the Loan Documents are limited by <br /> bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' <br /> rights generally, and by equitable principles, whether considered at law or in equity. <br />