COLORADO WATER CONSERVATION BOARD 102 Columbine Building 1845 Sherman Street Denver, Colorado 80203 January 6, 1969 M E M O R A N D U M
TO: Members, Colorado Water Conservation Board and Colorado River Advisory Committee. FROM: Felix L. Sparks, Director.
SUBJECT: Agenda Item #5, Board Meeting, January 15, 1969, Proposed Amendment to Water conservancy District Law re Sale of Bonds.
Enclosed herewith is a proposed amendment to the Water conservancy District Act pertaining to the issuance and sale of bonds. The original language of this section was enacted in 1937 and does not provide sufficient flexibility in the issuance and sale of bonds. Actually there have been very few occasions, if any, when water conservancy districts have actually issued bonds. However, the Tri-County Water Conservancy District now
finds i t necessary to issue bonds to finance in part the ~on-struction of its domestic pipeline system. In order to compete in today's bond market, i t is apparent that the existing statu-tory provisions relating to bonds should be amended.
The enclosed amendment has been recommended by Bosworth, Sullivan and Company, Inc. From the explanation given to us and from our own an,1lysis, we conclude that bonds of water conservancy districts would be more readily saleable and at a more favorable interest rate if the proposed amendment were adopted. We therefore recommend that the Board endorse the proposed amendment for consideration by the Colorado General Assembly and the Governor.
FLS:lk Enclosure
BY REPRESENTATIVE
AGENDA ITEM #5
Preliminary Draft
FORTY-SEVENTH GENERAL ASSEMBLY
STATE OF COLORADO
HOUSE BILL NO.
~~~~~~~~~~~A BILL FOR AN ACT
AMENDING 150-5-33, COLORADO REVISED STATUTES 1963, RELATING
TO BONDS AND INTERIM WARRANTS OF WATER CONSERVANCY
DISTRICTS.
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Enacted
El
~General Assembly of
~State of Colorado:
SECTION 1.
150-5-33, Colorado Revised Statutes 1963,
is hereby amended to read:
150-5-33.
Board to execute contracts--issue bonds.
To
pay for construction, operation and maintenance of said works
and expenses preliminary and incidental thereto, the board is
hereby authorized to enter into contract with the United States
or any agency thereof, providing for payment in installments or
to issue negotiable bonds of the district. If bonds are
auth-orized, the same shall bear interest at a rate OR RATES not
exceeding six per cent per annum, payable ANNUALLY OR semiannually,
and shall be due and payable, not less than ten nor more than
fifty years from their dates.
The form, terms and provisions of
said bonds, provisions for their payment and conditions for their
retirement and calling, not inconsistent with law, shall be vested and determined by the board and they shall be issued in payment of the works, equipment, expenses and interest during the
period of construction. WHEN A BONDED INDEBTEDNESS HAS BEEN
AUTHORIZED PURSUANT TO SECTION 150-5-34 THE BOARD MAY ISSUE INTERIM WARRANTS BEARING INTEREST AT A RATE OR RATES NOT EXCEED-ING SIX PER CENT PER ANNUM, SUCH INTERIM WARRANTS TO BE PAYABLE AT SUCH TIME OR TIMES NOT EXCEEDING THREE YEARS FROM THE DATE OF THEIR ISSUANCE AND ON SUCH TERMS AND CONDITIONS AS XHE BOARD MAY DETERMINE~ AND SUCH BONDS ALSO MAY BE ISSUED TO PAY INTERIM
WARRANTS AS THEY BECOME DUE OR MAY BE EXCHANGED FOR THE INTERIM
WARRANTS AS THE BOARD MAY DETERMINE. Said bonds OR INTERIM
WARRANTS shall be executed in the name of and on behalf of the district and signed by the president of the board with the seal of the district affixed thereto and attested by the secretary
of the board. Said bonds OR INTERIM WARRANTS shall be in such
denominations as the board shall determine and shall be payable to bearer and may be registered in the office of the county
treasurer of the county wherein the organization of the district has been effected, with the interest coupons payable to bearer, which shall bear the facsimile signature of the president of
the board. Such bonds, INTERIM WARRANTS, AND THE INCOME FROM
SUCH BONDS AND INTERIM WARRANTS shall be exempt from all state,
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county, municipal, school and other taxes imposed by any taxing
authority of the state of Colorado, and
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iess-~aaa-~a~-aaa-aee~ttea-ia~e~es~ SUCH BONDS OR INTERIM WARRANTS
MAY BE USED AS SECURITY FOR ANY DEPOSITORY BOND OR OBLIGATION
WHERE ANY KIND OF BONDS OR OTHER SECURITIES MUST OR MAY, BY LAW,
BE DEPOSITED AS SECURITY.
ANY RESOLUTION AUTHORIZING, OR OTHER
INSTRUMENT APPERTAINING TO, ANY BONDS OR INTERIM WARRANTS UNDER
THIS ARTICLE MAY PROVIDE THAT EACH BOND OR INTERIM WARRANT
THERE-IN AUTHORIZED SHALL RECITE THAT IT IS ISSUED UNDER AUTHORITY OF
THIS ARTICLE.
SUCH RECITAL SHALL CONCLUSIVELY IMPART FULL
COM-PLIANCE WITH ALL OF THE PROVISIONS OF THIS ARTICLE, AND ALL BONDS
AND INTERIM WARRANTS ISSUED CONTAINING SUCH RECITAL SHALL BE
INCONTESTABLE FOR ANY CAUSE WHATSOEVER AFTER THEIR DELIVERY FOR
VALUE.
SECTION 2.
Severability clause.
If any provision of this
act or the application thereof to any person or circumstances
is held invalid, such invalidity shall not affect other
provi-sions or applications of the act which can be given effect
with-out the invalid provision or application, and to this end the
provisions of this act are declared to be severable.
SECTION 3.
Effective date.
This act shall take effect on
the first day of the first month after the act's approval.
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SECTION 4. Safety clause. The general assembly hereby
finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.
