ARTICLE VIII
BONDED INDEBTEDNESS

Section 8.1 Forms of Borrowing:

The City may borrow money and issue securities in evidence thereof as follows:

A.    Short term notes;

B.    Anticipation warrants;

C.    General obligation bonds;

D.    Revenue bonds;

E.    Industrial revenue development bonds;

F.    Local improvement bonds;

G.    Any other like securities.

Section 8.2 Short Term Notes:

The City may, by resolution of the City Council without an election, issue short term notes maturing within twelve (12) months of the date of this issuance. Such notes are not indebtedness within the limitations of Sections 8.3 and 8.4.

Section 8.3 General Obligations Securities:

No bonds or other evidence of indebtedness payable in whole or in part from the proceeds of ad valorem taxes or to which the full faith and credit of the City are pledged shall be issued until the question of their issuance shall be submitted to a vote of the registered electorate at a special or general municipal election and approved by a majority of those voting, but voter approval shall not be necessary for the issuance of such securities in connection with acquiring water and rights thereto, or acquiring, improving, or extending a municipal water system or any combination of such purposes, nor for acquiring, constructing, improving, or extending a municipal sewer system, or sewer treatment facilities, or any combination thereof, or for acquiring, constructing, extending, improving a municipal storm drainage system, or any combination thereof, nor for securities issued pursuant to Section 8.7 and 8.8 hereof.

Section 8.4 Limitations of Indebtedness:

The aggregate amount of bonds or other forms from the proceeds of ad valorem taxes or to which the full faith and credit of the City are pledged (including such debts relating to water and sewer, and excluding securities issued under Section 8.7) shall not exceed twenty (20) per cent of the assessed valuation of the taxable property within the City as shown in the most recent assessment.

Section 8.5 Revenue Bonds:

The City may, by ordinance of the City Council, without an election and without adherence to the limitations of Section 8.4, issue securities made payable solely from revenues other than the proceeds of ad valorem taxes, including, without limiting the generality of the foregoing, the issuance of securities payable from revenue derived from the operation of the project or capital improvements acquired or bettered with the securities’ proceeds, or from any other projects or improvements, from the available proceeds of any sales tax, use tax, or excise tax, or from any part or combination of such sources. Interim securities and anticipation warrants are among the securities which may be issued and made so payable or made payable from the proceeds of the bonds.

Section 8.6 Industrial Revenue Development Bonds:

The City may, by ordinance of the City Council, without an election and without adherence to the limitations of Section 8.4 hereof, issue industrial revenue development bonds in accordance with the statutes of the State of Colorado.

Section 8.7 Local Improvement Bonds:

The City may, by ordinance of the City Council, contract or construct local or special improvements within a specified district of the City and determine the method of specially assessing the cost of such improvements, unless the owners of a majority of the property of such district oppose the project, or alternatively, if Council so provides by procedural ordinance, a majority of the owners of property in an assessment unit oppose the project to be constructed in such unit. In connection with local improvement bonds payable for special assessments to be levied in such districts, the City may provide a special surplus and deficiency fund. Such fund shall be maintained to provide separate accounting for any surplus or deficiency after the bonds for a district are completely paid. Any surplus may be applied to any other local improvement bonds or may be returned to the general fund when no other improvement bonds are outstanding. In addition, the City Council may provide for additional security by annual tax levied on all taxable property within the City of no more than three (3) mills, or in lieu of such a tax, may annually transfer to such special fund any available money of the City. The City may also pay out of such funds of the general fund the balance of any local improvement bond that had been retired, to the extent of eighty (80) per cent, in order for the remaining bonds to be retired as due. The City shall reimburse itself by collecting any unpaid assessments due in connection with the district. Local improvement bonds, as well as any other securities of the City, may be sold at public or private sale.

Section 8.8 Refunding Securities:

The City may, by ordinance, issue securities for the purpose of refunding outstanding securities as the same mature or in advance of maturity (without impairing them outstanding contractual rights) by means of escrow or otherwise. It shall be the duty of the council to authorize such refunding securities whenever it determines it to the best advantage of the City to do so. Refunding securities are made payable in whole or part from the proceeds of the ad valorem taxes, or if they constitute a pledge of the full faith and credit of the City, the refunding securities shall not be issued unless they are first submitted to a vote in conformity with Section 8.3 hereof, except that no such election shall be necessary as a condition precedent to the issuance of securities to refund general obligations originally issued with voter approval, water securities, sewer securities, or local improvement securities. General obligation refunding securities except water and sewer debts, shall be included in any debt limitation determination made pursuant to Section 8.4, but the securities so refunded shall not be included in such determination.

Section 8.9 Lease Agreement:

The City Council may, by ordinance, without the necessity of a vote of the registered electorate, enter into a rental or leasehold agreement that may provide for payment thereof by general appropriation levy, by imposition of usage fees on such rental of leasehold property, or a combination of both general appropriation levy and imposition of usage fees. The obligation to pay such rental or leasehold cost shall not be construed to be part of this Charter’s limitation on indebtedness.