City Council Agenda and Packet 1978 10 05

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411 ORDINANCE NO. AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OF THE CITY OF LOUISVILLE, COLORADO, AND UPON THE CREDIT THEREOF BY ISSUING GENERAL OBLIGATION WATER BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF $344,000 FOR THE PURPOSE OP SUPPLYING THE CITY WITH WATER BY EXTENDING AND IMPROVING THE EXISTING WATERWORKS SYSTEM OF THE CITY; PRESCRIBING THE TORN OF SAID BONDS; PRO- VIDING FOR THE LEVY OF TAXES TO PAY THE SAME: AND DECLARING AN EMERGENCY. WHEREAS , a majority of the voters of the City of Louisville, Colorado, who were taxpayers under the law, voting on the question at a muricipal election heretofore held in said City, by their vote approved and authorized the City Council of the City to erect a system of waterworks for fire and domestic purposes, the same to be owned and operated by the City; and WHEREAS, the City did erect and ever since said time has owned, operated and maintained a system of waterworks for said purpose; and WHEREAS, it is necessary to extend and improve the waterworks system in order to supply the City and the inhabitants thereof with a proper and adequate supply of water; and WHEREAS, the estimated total project cost of the improve- ments and extensions to the water system is $1,237,000, and the City has previously authorized and issued its General Obligation Water Bonds, dated April 1 , 1978 , in the principal amount of $300,000, for the payment of part of such cost; and WHEREAS, the City has entered into a loan agreement with the United States Department of Agriculture, Fairmers Home Adminis- tration, whereby the Farmers Home Administration will purchase general obligation water bonds in the principal amount of $344,000, at an interest rate of 5% per annum, for the pay-,ent of part of the additional cost; and WHEREAS, it is necessary to authorize the issuance of said bonds and to provide for the form and payment t:ier,..f; - ?