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<br />. <br /> <br />. <br /> <br />ORDINANCE NO. 91, 1988 <br /> <br />AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN <br />AGREEMENT WITH THE COLORADO WATER CONSERVATION BOARD. <br /> <br />WHEREAS, the City .of Fart Callins, Calorada (the City), <br />has heretofore entered inta a Contract Between the United States <br />of America and the City of Fart Callins far the Canstructian .of a <br />Small Reclamation praject (No. 8-07-70-W0270), dated April 21, <br />1978 (the Cantract), pursuant ta the Small Reclamation Projects <br />Act (Public Law 84-984), .obligating the City to pay the principal <br />sum .of $7,355,000 with interest an a partian thereaf (determined <br />in accordance with a farmula) at the rate of 6.125% per annum; <br />and <br /> <br />WHEREAS, the principal balance payable under the <br />Contract is currently $4,598,000; and <br /> <br />WHEREAS, the United States Department of the Interior <br />has .offered the City the appartuni ty to prepay its abligatians <br />under the Contract pursuant ta Section 5301 .of the Budget <br />Recanciliation Act .of 1987 at a substantial discount; and <br /> <br />WHEREAS, the Council .of the City (the Cauncil) has <br />heretafore by Resoluti.on 88-92 (the Resalution) authorized the <br />City ta participate in the prepayment pragram; and <br /> <br />WHEREAS, an June 9, 1988, the City transmitted ta the <br />United States Department .of Interiar, Bureau .of Reclamatian, a <br />letter expressing its intent ta purchase the laan represented by <br />the Cantract fram financing ather than tax-exempt financing on .or <br />befare August 17, 1988, and a capy .of the Resalutian; and <br /> <br />WHEREAS, the Calorada General Assembly has autharized <br />the Colarada Water Canservation Board (the Baard) ta laan maneys <br />t.o the City ta enable the City, if it chaases ta do so, ta <br />purchase the loan represented by the Cantract pursuant ta <br />Sectian 2 of Senate Bill Na. 30 as enacted and signed into law an <br />May 23, 1988 (the Act); and <br /> <br />WHEREAS, the City has obtained a commi tment fram the <br />Baard far such a laan at the rate of 5.00% per annum, secured by <br />the full faith and credit .of the City and/ar the net revenues .of <br />the City's water system, as the Board and the City may hereafter <br />agree; and <br /> <br />WHEREAS, the City has heretofare issued and saId its <br />General Obligatian Water Bonds, Series 1977, dated October I, <br />1977, in the .original aggregate principal amount .of $5,000,000, <br />and its General Obligation Water Refunding and Impravement Bonds, <br />Series 1986, dated August I, 1986, in the .original aggregate <br /> <br />BD3826 <br /> <br />2 <br /> <br />07/20/88 <br />