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<br />ORDINANCE NO. 91, 1988
<br />OF THE COUNCIL OF THE CITY OF FORT COLLINS
<br />AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT
<br />WITH THE COLORADO WATER CONSERVATION 80ARD
<br />
<br />WHEREAS, the City of Fort Coll ins, Colorado (the City), has
<br />heretofore entered into a Contract Between the United States of America and
<br />the City of Fort Collins for the Construction of a Small Reclamation
<br />Project (No. 8-07-70-W0270), dated April 21, 1978 (the Contract), pursuant
<br />to the Small Reclamation Projects Act (Public Law 84-984), obligating the
<br />City to pay the principal sum of $7,355,000 with interest on a portion
<br />thereof (determined in accordance with a formula) at the rate of 6.125% per
<br />annum; and
<br />
<br />WHEREAS, the principal balance payable under the Contract is
<br />currently $4,598,000; and
<br />
<br />WHEREAS, the United State Department of the Interior has offered
<br />the City the opportunity to prepay its ob1 igations under the Contract
<br />pursuant to Section 5301 of the Budget Reconcil iation Act of 1987 at a
<br />substantial discount; and
<br />
<br />WHEREAS, the Council of the City (the Council) has heretofore by
<br />Resolution 88-92 (the Reso1utian) authorized the City to participate in the
<br />prepayment program; and
<br />
<br />WHEREAS, on June 9, 1988, the city transmitted to the United
<br />States Department of Interior, Bureau of Reclamatian, a letter expressing
<br />its intent to purchase the loan represented by the Contract from financing
<br />other than tax-exempt financing on or before August 17, 1988, and a copy of
<br />the Resolution; and
<br />
<br />WHEREAS, the Colorado General Assembly has authorized the
<br />Colorado Water Conservation Board (the Board) to loan moneys to the City to
<br />enable the City, if it chooses to do so, to purchase the loan represented
<br />by the Contract pursuant to Section 2 of Senate Bill No. 30 as enacted and
<br />signed into law on May 23, 1988 (the Act); and
<br />
<br />WHEREAS, the City has obtained a commitment from the Board for
<br />such a loan at the rate of 5.00% per annum, secured by the full faith and
<br />credit of the City and/or the net revenues of the City's water system, as
<br />the Board and the City may hereafter agree; and
<br />
<br />WHEREAS, the Ci ty has heretofore issued and sa 1 d its General
<br />Obligation Water Bonds, Series 1977, dated October 1, 1977, in the original
<br />aggregate principal amount of $5,000,000, and its General Obligation Water
<br />Refunding and Improvement Bonds, Series 1986, dated August 1, 1986, in the
<br />original aggregate principal amount of $33,030,000 (collectively, the
<br />Bonds), pursuant to Ordinance No. 109, 1977, and Ordinance No. 100, 1986
<br />(collectively, the Bond Ordinances), respectively; and
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