TC Res. No. 1996-33RESOLUTION NO. 96-33
A'RESOLUTION ESTABLISHING A WATER ENTERPRISE
FUND
BE IT RESOLVED by the Town Council of the Avon of Avon
as follows:
1. Establishment of Water Enterprise Fund. There is
hereby established, pursuant to,Article 45.1, Title 31, Colorado
Revised Statutes, a Water Enterprise Fund as a subsection (2)(d)
enterprise within the definition of Section 20, Article X, Colo.
Const.
2. Characteristics of Fund. The Water Enterprise Fund
shall have the following.characteristics:
a. The Water Enterprise Fund shall meet the
requirements of an "enterprise" as defined in Section 20, Article
X, Colo. Const.
b. The governing body of the Water Enterprise Fund
shall be the Town Council of the Town of Avon. Such governing
body may exercise the Town's legal authority relating to water
activities, but the Water Enterprise Fund may not levy'a tax
which is subject to section 20(4) of Art. X, Colo. Const.
c. The Water Enterprise Fund shall- be owned by the
Town of Avon.
2. Issuance of Revenue Bonds. The Water Enterprise
Fund shall have the following authority to issue its own revenue
bonds:
a. in accordance with and as empowered by the
provisions of S 14.3(d) of the Charter of the Town of Avon, the
Water Enterprise Fund is authorized to issue its own bonds or
other financial obligations in the name of the Town of Avon
payable solely from revenues derived or to be derived from the
functions, services, benefits or facilities of the Water
Enterprise Fund. Such bonds or other obligations shall be
authorized by resolution after approval and authorization by the
Water- Enterprise Fund. Such bonds or other obligations may be
issued without voter approval.
b. Bonds, notes or other financial obligations may be
issued pursuant to this section without regard to the provisions
of any other law. The terms, conditions and details of such
bonds or other financial obligations, the procedures related
thereto, and the refunding thereof shall be set forth in the
resolution authorizing such bonds or other financial obligations.
The powers provided in this subsection to issue bonds or other
financial obligations are in addition and supplemental to, and
not in substitution for, the powers conferred by any other law or
resolution, and the powers provided in this section shall not,
modify, limit or affect the powers conferred by any other law
either directly or indirectly.
3. Maintenance of Fund Records. The Finance Director
of the Town shall establish, maintain and record a fund and the
account of such fund which shall:
a. Be called the "Water Enterprise-Fund."
b. Be restricted in expenditures consistent with
sources of receipts.
c. Be restricted in authorization for expenditures to
the expending authority prescribed by law.
4. Source of Funds. Funds comprising the water
Enterprise Fund shall be proceeds from fees charged for services
furnished by the water distribution system of the Town of Avon,
including tap fees and user fees; grants from the state and
federal governments; transfers from other funds; gifts and
donations; interest; and proceeds from the sale of revenue bonds.
5. Assets. All assets.to be operated and maintained
by.the Water Enterprise Fund shall remain in the ownership of the.
Town. The Town hereby assigns the use and management of all such
assets, whether real or personal, to the Enterprise.
6. Limitations of obligations of the Enterprise. The
Town has previously incurred certain general obligation
indebtedness pursuant to its statutory powers. Such indebtedness
shall continue to be paid from Enterprise revenues, however, in
no event shall the Enterprise be required, or shall it otherwise
be authorized, to levy any tax for repayment of such debt and
such obligation to tax shall be that solely of the Town. Nothing
herein shall limit the Town's authority to levy taxes for
repayment of its general obligation indebtedness presently
outstanding or any such additional general obligation
indebtedness as may be incurred by'the Town from time to time.
annpTrn at a reaular meeting of the Town Council of the