(1)The board of directors of the district acting as the governing body, in the name and
on the behalf of the subdistrict as provided in section 37-46-110 and not otherwise,
when authorized by the plan of organization and decree of court organizing said
subdistrict to do so, may issue general obligation bonds or otherwise incur a
general obligation indebtedness to finance, in whole or in part, the construction or
other acquisition of works, reservoirs, or other improvements for the beneficial use
of water for the purposes for which it has been or may be appropriated, including,
without limitation, the hydrogeneration of electricity, or the acquisition by
purchase, rental, lease, or exchange of water, or the purchase or exchange of water
rights or electricity and appurtenances (o
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(1)
The board of directors of the district acting as the governing body, in the name and
on the behalf of the subdistrict as provided in section 37-46-110 and not otherwise,
when authorized by the plan of organization and decree of court organizing said
subdistrict to do so, may issue general obligation bonds or otherwise incur a
general obligation indebtedness to finance, in whole or in part, the construction or
other acquisition of works, reservoirs, or other improvements for the beneficial use
of water for the purposes for which it has been or may be appropriated, including,
without limitation, the hydrogeneration of electricity, or the acquisition by
purchase, rental, lease, or exchange of water, or the purchase or exchange of water
rights or electricity and appurtenances (or any combination thereof), and to finance
incidental expenses pertaining thereto, whether or not the interest on such bonds
may be subject to taxation. Said obligations shall bear interest at a rate such that
the net effective interest rate of the issue does not exceed the maximum net
effective interest rate authorized. Interest shall be payable semiannually, but the
first installment of interest may evidence interest for not exceeding two years from
the date of issue, and said obligations may be issued and made payable in series
becoming due over a term of not less than five years and not more than fifty years
after the date of issue. Such bonds or other indebtedness is to be paid from general
ad valorem taxes levied from time to time, as the bonds or other indebtedness and
interest thereon become due, against the taxable property in said subdistrict and
not otherwise; but such taxes may be diminished to the extent other revenues are
made available to pay such debt service as the same becomes due. The board of
directors of the district shall certify to the boards of county commissioners of the
several counties in which said subdistrict or any part thereof is located the amount
of the levy necessary to pay said bonds or installments of principal of other
indebtedness as they mature and also to pay the interest becoming due on all
outstanding bonds or other indebtedness, and the procedure for the assessment
and collection of revenue or taxes of the county and state are, except as may be
otherwise provided in this article, made applicable and are to be followed in the levy
of assessments for payment of taxes and collection of principal and interest on
such general obligations.
(2) The board of directors of the district acting as the governing body, in the
name and on the behalf of the subdistrict, may issue revenue bonds to finance, in
whole or in part, the construction or other acquisition of works, reservoirs, or other
improvements for the beneficial use of water for the purposes for which it has been
or may be appropriated, including, without limitation, the hydrogeneration of
electricity, or the acquisition by purchase, rental, lease, or exchange of water, or
the purchase or exchange of water rights or electricity and appurtenances (or any
combination thereof), and to finance incidental expenses pertaining thereto,
whether or not the interest on such bonds may be subject to taxation. Such revenue
bonds shall be issued in such denominations and with such maximum net effective
interest rate as may be fixed by the board of directors of the subdistrict and shall
bear interest such that the net effective interest rate of the bonds does not exceed
the maximum net effective interest rate authorized. The board shall pledge only
bond proceeds, sale proceeds, rental or lease proceeds, service charges, and other
income from such works or other improvements or from the sale, rental, lease, or
exchange of water or the sale or exchange of electricity (or any combination
thereof), and the subdistrict shall not be otherwise obligated for the payment
thereof. At the time said revenue bonds are issued, the board of directors of the
subdistrict shall make and enter in the minutes of the proceeding a resolution in
which the due dates of such revenue bonds, the rates of interest thereon, the
general provisions of the bonds, and a recital that the same are payable only out of
bond proceeds, sale proceeds, rental and lease proceeds, service charges, and
other income from such works or other improvements and from the sale, rental,
lease, or exchange of water or the sale or exchange of electricity (or any
combination thereof) are set forth. In addition, the board of directors shall require
the payment of rental or lease charges, service charges, or other charges by the
political subdivisions or persons who are to use or derive benefits from the water or
other services furnished by such works or improvements or otherwise. Such
charges shall be sufficient to pay operation and maintenance expenses thereof, to
meet said bond payments, to accumulate and maintain reserve and replacement
accounts pertaining thereto as set forth in such resolution, and to provide funds
sufficient for the further development of water resources for all of the foregoing
beneficial purposes. Such resolution shall be irrepealable during the time that any
of the revenue bonds are outstanding and unpaid. Except as provided in sections 11-55-101 to 11-55-106, C.R.S., the revenue bonds shall be signed Water Users'
Association No. .... in the Colorado River Water Conservation District, By ..........,
President. Attest .........., Secretary or Special Improvement District No. .... in the
Colorado River Water Conservation District, By ........., President. Attest ..........,
Secretary, and they shall be countersigned by the treasurer.