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<br />"', .0 <br /> <br />\ <br /> <br />ORDINANCE NO. ~ 7 + <br /> <br />AN ORDINANCE APPROVING A CONTRACT OF INDEBTEDNESS ON <br />BEHALF OF THE TOWN OF MORRISON, COLORADO TO THE <br />STATE OF COLORADO WATER CONSERVATION BOARD IN THE <br />PRINCIPAL AMOUNT OF $504,000 FOR THE PURPOSE OF <br />REPAIRING CERTAIN COMPONENTS OF THE TOWN'S WATER <br />WORKS SYSTEM <br /> <br />WHEREAS, on April 2, I996, the voters of the Town of Morrison, Colorado (the <br />"Town") authorized the Board of Trustees to increase the debt of the Town by a principal amount <br />of up to $504,000 by borrowing up to that amount from the Colorado Water Conservation Board <br />with interest not to exceed 5% per annum to be repaid over a term not to exceed 30 years for <br />purposes of replacing the raw water diversion structure and associated structures, improvements, <br />pumping and piping facilities and with other terms and conditions to be approved by the Board of <br />Trustees; and <br /> <br />WHEREAS, the Board of Trustees has determined that such improvements are necessary <br />and deems it advisable and necessary to finance the cost of the improvements by entering into a <br />Loan Contract and Promissory Note and related Agreements and instruments with the Colorado <br />Water Conservation Board. <br /> <br />NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF <br />THE TOWN OF MORRISON, COLORADO, THAT: <br /> <br />Section I. Authorization of Loan. The Town of Morrison is hereby authorized to and <br />shall enter into, execute and deliver those document titled Loan Contract (the "Contract"), <br />Promissory Note, Security Agreement and Deed of Trust (collectively the "Loan Documents"), <br />presented by the Colorado Water Conservation Board ("State") and obtain from the State a loan <br />not to exceed a principal amount of$504,000 (the "debt"), to be repaid over a term 000 years <br />with interest at 5% per annum, in order to complete the authorized improvements to the Town's <br />water works, and the Town shall comply with the terms of the Loan Documents and repay the <br />indebtedness according to the terms of the Contract. <br /> <br />Section 2. Limited Pledge of General Revenues. The Town as security for the repayment of <br />the debt hereby pledges from its general revenues received each year an amount sufficient to pay <br />the annual payment due the State to repay the debt, and an additional sum each year, for the first <br />ten years, equal to one-tenth of the annual payment to be called a "debt reserve" and shall place <br />the funds in an account separate from all other Town funds and shall maintain these funds in such <br />separate account, using them for no other purpose, until such time as they are paid to the State <br />and shall replenish the debt reserve in the event any portion of it is used. <br /> <br />Appendix 1 to Loan Contract C153773 <br />