PROJC02294 ‎(2)‎

• Contract/PO #: C153396
• Contractor Name: Fruita, City of
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Contract Documents

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ORDINANCE 1990-05
AH ORDINANCE AMENDING ORDINANCE 1990-03 PROVIDING FOR
THE CONTINGENT PLEDGING OF SALES TAX REVENUES TO HE USED TO PAY
OBLIGATIONS OF THE CITY IH FAVOR OF THE COLORADO WATER
CONSERVATION HOARD
WHEREAS, the Fruita City Council passed and adopted Ordinance
1990-03 on March 26, 1990, concerning the pledging of future
sales tax revenues to the Colorado Water Conservation Board in
case of default by the City of Fruita on its payments to the
Colorado Water Conservation Board pursuant to Contract #C153382
and Contract #C153396.
WHEREAS, Ordinance 1990-03 is an Attachment to an Amendment to
the above noted Contracts between the City of Fruita and the
State of Colorado.
WHEREAS, the Colorado Attorney Generals Office has reviewed the
Ordinance and has raised objection to language in the Ordinance
where i n the C i ty ` promises' t~O ,, p~;l e`Flge i is sa 1 es tax revenues i n
case of def au 1 t by the C i t,y~ b fit~~~;~ayment ob 1 i gat i ons .
HOW, THEREFORE, BE IT ORDAIH.,EI)~BY, THE FRUITA CITY COUNCIL that
Section 1 and Section 2 of O~di\n~ns~-~190-03 be amended to read
as follows: CDeletions are limed through. Additions are in
capital letters.)
Section 1: To assure repayment of Contract #C153382 and Contract
#C153396, the City hereby PLEDGES and agrees
to use as security its sales tax revenues and its portion of Mesa
County sales tax collections
Water Conservation Board,
obligation bond commitments,
any payment obligations it
Conservation Board pursuant
#C153396.
for the benefit of the Colorado
subject to existing prior general
in the event the City defaults in
has owing to the Colorado Water
to Contract #C153382 or Contract
Section 2: The City covenants to not use its sales tax revenues
or its portion of I1esa County sales tax revenues to secure
payment of any obligation, except existing obligations secured by
sales tax revenues, which would superceed the City's
pledge and agreement to use its sales tax revenues in an amount
sufficient to secure annual payment obligations to Colorado Water
Conservation Board in case of default. This ordinance shall
constitute a binding security agreement between the City and the
Colorado Water Conservation Board.
PASSED BHA ADOPTE¢ Y TH,~ FRUITA CITY COUNCIL THIS
~~~//_ DRY OF -- 7 ~~~ ____________, 1990
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