CHAPTER 165. TOWNS AND CITIES REFUNDING INDEBTEDNESS. City Council may issue refunding bonds. Amount of When council may issue bonds without election. (S. B. No. 150, by Senator Dodge.) AN ACT TO ENABLE CITIES AND TOWNS TO REFUND THEIR BONDED Be It Enacted by the General Assembly of the State of Colorado: Section 1. The city council of any city, or the board of trustees of any town, in the State of Colorado, whether incorporated under the general laws or under special charter, may issue negotiable coupon bonds, to be denominated refunding bonds, for the purpose of refunding any of the bonded indebtedness of such city or town, whether due or not due, or which has or may hereafter become payable at the option of such city or town or by consent of the bondholders, or by any lawful means, whether such bonded indebtedness be now existing or may hereafter be created, and there shall not be funds in the treasury of such city or town available for the payment or redemption of such bonds; but the amount of such refunding bonds to be issued under the provisions. of this act shall first be determined by such city council or board of trustees, and a certificate of such determination shall be made and entered in and upon the records of the municipality prior to the issuance of said refunding bonds. Sec. 2. Whenever such city council or board of trustees shall deem it expedient to issue refunding bonds under the provisions of this act, and the rate of interest thereon shall not exceed the rate of interest upon the bonds to be refunded, such refunding bonds may issue without the submission of the question of issuing such refunding bonds to a vote of the qualified electors of such city or town. required. election. Question Sec. 3. Whenever such city council or board of When trustees shall deem it expedient to issue refunding bonds election under the provisions of this act, and the proposed rate of interest thereon shall exceed the rate of interest upon the bonds to be refunded, they shall, by ordinance, call a special election of the duly qualified electors, as here- Calling of inafter defined, of such city or town, for the of purpose voting upon the question of authorizing the city council or board of trustees to issue such refunding bonds, or the question may be submitted at a general election of municipal officers. At any election held under the provisions of this act, the question of authorizing the re- of issue funding of all or any part of the then outstanding bonded indebtedness of the city or town may be submitted as one question for determination, whether such bonds are of the same or of different issues. The notice of said election shall be published and posted for the same election. length of time and in the same manner, and the election shall be conducted and the result thereof determined and declared in all respects as nearly as may be in conformity with the provisions of the laws of Colorado governing elections of municipal officers in cities or towns, as the submitted. Notice of ballot. case may be. Said election notice shall specify the time what notice and place or places for holding said election, the amount shall specify. and date of the bonds to be refunded, the amount of refunding bonds proposed to be issued and the rate of interest, not exceeding six per centum per annum which they shall bear. At such election the ballots shall contain the words "Refunding Bonds-Yes," and the words Form of "Refunding Bonds-No," and the voter shall answer the question submitted by marking a cross (X) opposite the words expressing his choice. Such ballot shall be deposited in a separate ballot box provided by the city or town for that purpose, and no person shall vote on the question submitted unless such person be a qualified voter Qualification under the registration and election laws of the State of of voters taxpayer. County treasurer certify list of taxpayers. Record of Ordinance authorizing bond issue. Contents of ordinance. Form of refunding bonds. Bonds signed. Colorado applicable to municipalities of the class holding such election, and in addition to such qualification shall have paid a tax within the calendar year immediately preceding such election upon property assessed to the voter in such city or town. The county treasurer of the county in which said city or town shall be situated shall, upon demand of the city or town clerk, make out and cause to be delivered to such clerk, for delivery to the judges of election at such refunding bond election, a certified list of the property taxpayers as hereinbefore defined, and no person shall vote upon the refunding question submitted unless his or her name shall appear upon such list. Sec. 4. If the city council or board of trustees shall determine to issue refunding bonds bearing a rate of interest which shall not exceed the rate upon the bonds to be refunded, or if, upon canvassing the vote cast at any election held under the provisions of this act, it shall be determined by the city council or board of trustees that a majority of the legal votes cast upon the question submitted are in favor of refunding, the city council or board of trustees, as the case may be, shall make such determination a part of the official records of the municipality, and such city council or board of trustees shall immediately thereafter adopt and make a law of the municipality, an ordinance, which shall not be subject to the referendum provisions of any law, providing for the issue of said refunding bonds in accordance with the provisions of this act. Such ordinance shall fix the date of said refunding bonds, shall designate the denomination or denominations thereof, the rate of interest, which rate shall not be more than six per centum per annum, the maturity date, which shall not be more than twenty-five years from the date of said refunding bonds, and the place or places of payment within or without the State of Colorado, of both principal and interest, and shall prescribe the form of said refunding bonds. Such refunding bonds shall be negotiable in form, shall recite the title of the act under which they are issued, shall be executed in the name of the city or town, as the case may be, and signed by the mayor, countersigned by the treas coupons. urer, with the seal of the municipality affixed thereto and attested by the clerk. The interest accruing on such refunding bonds shall be evidenced by semi-annual interest Interest coupons thereto attached, bearing the engraved fac-simile signature of the treasurer of the municipality, and when so executed such coupons shall be the binding obligations of the municipality, according to their import. In the adoption of said ordinance providing for the issue of such refunding bonds, the city council or board of trustees payable. shall make the principal of the debt payable in equal annual installments during the period (not exceeding 25 years) within which the debt is to be discharged; Provided, That the date of the maturity of the first installment of the debt shall be not more than five years from the date of said refunding bonds. When bonds of refunding bonds. of sale. Sec. 5. All such refunding bonds may be exchanged Sale and dollar for dollar for the bonds to be refunded, or they exchange of may be sold at not less than their par value, and the proceeds thereof shall be applied only to the purpose for which such refunding bonds were issued. Such refunding bonds shall not be sold except after public notice of Notice sale, published at least once each week for two successive weeks in a newspaper published in the city or town. and inviting bids therefor. The notice shall fix the place and time of sale, which time shall be not less than fifteen days after the date of the first publication thereof. The city council or board of trustees may reject any or all bids received, and sell the bonds at private sale. Such refunding bonds shall not be issued until the outstanding Refunding bonds to be refunded have been called in and cancelled in an amount equal to or in excess of the bonds so issued, and all accrued interest on any such bonds to be refunded shall be paid before such refunding bonds are issued. Sec. 6. The interest accruing on such refunding bonds issued pursuant to the provisions of this act prior to the time when tax levies are available therefor shall be paid out of the general revenues of the municipality, and for the purpose of reimbursing such general revenues and for the payment of subsequently accruing interest, the city council or board of trustees issuing such refund bonds not issued while old bonds outstanding. Interest on payable. bonds, how Redemption fund. Taxes pay able in cash. Ordinance not repealed during life of bonds. Acts repealed. ing bonds, or the proper tax-assessing and collecting officers upon whom shall devolve the duty of levying and collecting city or town taxes, shall levy annually a sufficient tax upon all the taxable property in the city or town fully to discharge such interest; and for the ultimate redemption of such refunding bonds they shall levy annually such a tax upon all the taxable property in such city or town as will create a fund sufficient to discharge each annual installment of such refunding bonds at the maturity thereof, which fund shall be called the redemption fund. All taxes for interest on and for the redemption of such bonds shall be paid in cash only and shall be kept by the city or town treasurer as a special fund, to be used only in payment of the interest upon and for the redemption of such bonds, and such tax shall be levied and collected as other city or town taxes are levied and collected. The tax provisions for the ultimate redemption of such bonds shall be set forth in the ordinance authorizing their issue, and shall set forth the years in which such taxes shall be levied for the creation of said redemption fund. Sec. 7. Any ordinance authorizing an issue of refunding bonds under the provisions of this act, and providing for the levy of taxes for the payment of the interest upon and the principal of such refunding bonds, shall not be altered or repealed until the indebtedness thereby authorized shall have been fully paid. Sec. 8. An act entitled "An Act to enable cities and towns of the state, whether incorporated under general law or under special charter, to refund their bonded indebtedness which has matured or may hereafter mature or has or may hereafter become payable at the option of said city, or town, by issuing refunding bonds, providing for an election and the payment of the principal and interest and the registration thereof, and repealing Chapter 110 of the Session Laws of Colorado, 1895, and all conflicting acts," approved April 30, being Chapter 109, Session Laws of 1901, and Section Five (5) of an act entitled "An Act to amend Sections 51, 56, and 58, and to repeal Section 57, of Chapter CIX, of the General Statutes of the State of Colorado, entitled 'Towns and |