Finance Committee Agenda and Packet 2013 07 15

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2 WHEREAS, the Council has determined, and hereby determines, that it is necessary and in the best interest of the City and its inhabitants that the City exercise its option to prepay all of the amounts due and owning under the 2003 Loan (the “Refunding Project”); and WHEREAS, the Council therefore deems it necessary and advisable to issue its “City of Louisville, Colorado, Water and Wastewater Enterprise Revenue Refunding Bonds, Series 2013” (the “Bonds”), for the purpose of accomplishing the Refunding Project; and WHEREAS, except for the 2003 Loan which will be prepaid with the net proceeds of the Bonds, the City has not pledged nor in any way hypothecated revenues derived and to be derived directly or indirectly from the operation of the System to the payment of any securities or for any other purpose (excluding securities which have heretofore been redeemed in full, as to all principal, premium, if any, and interest, or are otherwise not outstanding) and with the result that the Net Revenues may now be pledged lawfully and irrevocably for the payment of the Bonds, and they may be made payable from the Net Revenues; and WHEREAS, a form of Bond Purchase Agreement (the “Bond Purchase Agreement”) relating to the purchase of the Bonds by a purchaser to be determined in accordance with the terms and provisions of this Ordinance (the “Purchaser”) has been filed with the City; and WHEREAS, pursuant to Section 11-57-203, Colorado Revised Statutes, as amended, the City desires to delegate to the City Manager and the Finance Director the power to determine the Purchaser, accept the Bond Purchase Agreement and to make certain other determinations with respect to the Bonds, including without limitation, the rate of interest on the Bonds, the redemption provisions of the Bonds, the price at which the Bonds will be sold, the aggregate principal amount of the Bonds to be issued, the amount of principal maturing, or subject to mandatory redemption, in any particular year, and the existence and amount of any reserve fund securing the Bonds; and WHEREAS, there has been filed with the City Clerk the following documents: (a) the form of Registrar and Paying Agent Agreement between the City and U.S. Bank National Association, as registrar and paying agent (the “Paying Agent Agreement”); and (b) the form of the Bond Purchase Agreement; and WHEREAS, the Council has determined and does hereby declare: A. It is advantageous and favorable to the City and its inhabitants to prepay the 2003 Loan in whole and to issue the Bonds; B. The Bonds shall be issued to finance the Refunding Project; C. The Net Revenues shall be pledged to the payment of the Bonds; 8