BOARD00489

• Board Meeting Date: 7/24/2000
• Description: Impacts of Initiative 205 on Water Districts
• Board Meetings - Doc Type: Memo

,

,

e

e

The following is a sample of a question which might be adopled in the future to
account for the Amendment's tax cuts; the language in bold represents a potential modification to .
account for the tenns of the Amendment. The language in bold represents the worst-case scenario;
it is not certain that the added language will be necessary for future election questions. We are still
considering whether previous forms of bond or tax questions will be sufficient for purposes of the
Amendment.

SHALL MILE BlGH CITY DEBT BE INCREASED $5,000,000
\VITHAREPA YMENT COST OF $9,000,000 AND SHALL CITY
TAXES BE INCREASED $500,000 ANNUALLY (OR SUCH
illGHERAMOUNT AS IS NECESSARY SO AS TO RESULT
IN NET REVENUE OF $500,000 AFTER TAKING INTO
ACCOUNT THE TAX CUTS SPECIFIED IN SECTION 8(D)
UNDER ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION) FOR THE PURPOSE OF FINANCING
[SPECIFY PROJECT]; AND SHALL THE MILL LEVY BE
INCREASED IN ANY YEAR \VITHOUT LIMlTATION AS TO
RATE BUT ONLY IN AN AMOUNT SUFFICIENT TO PAY THE
PRINCIPAL OF AND PREMIUM, IF ANY, AND INTEREST ON
SUCH DEBT OR ANY REFUNDING DEBT WHEN DUE; SUCH
DEBT TO BE EVIDENCED BY BONDS, NOTES, CONTRACTS,
LOAN AGREEMENTS OR OTHER FORMS OF INDEBTEDNESS
BEARING INTEREST AT A MAXIMUM NET EFFECTIVE
INTEREST RATE NOT TO EXCEED _%; SUCH DEBT TO BE
SOLD IN ONE SERIES OR MORE, ON TERMS AND
CONDITIONS AS THE CITY COUNCIL MAY DETERMINE,
INCLUDING PROVISIONS FOR REDEMPTION OR
PREPAYMENT PRIOR TO MATURITY WITH OR \VITHOUT
PAYMENT OF THE PREMIUM; AND SHALL THE EARNINGS
FROM THE INVESTMENT OF THE PROCEEDS OF SUCH DEBT
AND TAX REVENUE BE COLLECTED AND SPENT \VITHOUT
LIMITATION OR CONDITION, AS A VOTER-APPROVED
REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE
COLORADO CONSTITUTION OR ANY OTHER LAW?

7