ARTICLE IX
CITY OWNED UTILITIES

Section 9.1 Authority and Powers:

The City shall have an exercise, with regard to City-owned utilities (refer to 11.14J) including water and water rights and acquisition thereof, and bonded indebtedness in connection therewith, all the authority and powers provided by the Constitution and Statutes of the State of Colorado. In addition, the City shall also have power to exchange water rights owned by it for water rights owned by other person, municipalities, or quasi-municipal corporations. The City shall also have the right to contract with such aforementioned persons or entities for the purpose of forming consolidated water or sewer districts, or for furnishing any municipal services, within or without the corporate limits of the City, provided any agreements or contract arising therefrom would clearly benefit the inhabitants of the City.

Section 9.2 Rates and Finances:

The Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees, or charges for water and electricity, and for water, sewer, electric service, and other utility service furnished by the City, as will produce revenues at least sufficient to pay the cost of operation and maintenance of said utilities in good repair and working order; to pay the principal of and interest on all bonds of the City payable from the revenues of said utilities; to provide and maintain an adequate fund for replacement of depreciated or obsolescent property, and for the extension, improvement, enlargement, and betterment of said utilities; to pay the interest on, and the principal of, any general obligation bonds issued by the City to extend or improve said utilities.

The provisions hereof shall be subject at all times to the performance by the City of all covenants and agreements made by it in connection with the issuance, sale or delivery of any bonds of the City, payable out of the revenues derived from the operation of its water, electric, sewer and other utilities, whether such revenue bonds be heretofore or hereafter issued.