HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/21/2006 - POSTPONEMENT OF SECOND READING OF ORDINANCE NO. 1 ITEM NUMBER: 9
AGENDA ITEM SUMMARY DATE: November 21, 2006
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
SUBJECT
Postponement of Second Reading of Ordinance No. 182, 2006, Authorizing and Approving the
Issuance and Sale of Not to Exceed $20,000,000 Pollution Control Refunding Revenue Bonds
(Anheuser-Busch Project) Series 2006 of the City of Fort Collins, Colorado, to Refund Certain
Bonds of the City of Fort Collins, Colorado, Issued to Refinance Certain Water Pollution Control
Facilities, Sewage Facilities and Solid Waste Disposal Facilities; the Execution and Delivery of an
Indenture of Trust to Secure Said Bonds;the Execution and Delivery of a Loan Agreement Between
Anheuser-Busch Companies, Inc. and the City of Fort Collins, Colorado Providing for the
Repayment of the Loan of the Proceeds of Said Bonds; the Execution and Delivery of a Tax
Regulatory Agreement,Bond Purchase Agreement,Official Statement and Said Bonds in Connection
Therewith; and Providing for Certain Other Matters in Connection with the Delivery of the Bonds
to December 5, 2006.
RECOMMENDATION
Staff recommends postponement of the Second Reading of Ordinance No. 182, 2006 to December
5, 2006.
EXECUTIVE SUMMARY
In 1984, the City issued $35,000,000 of pollution control revenue bonds for the Anheuser-Busch
Companies,Inc. (the"Company"). In 1986,the bonds were reissued in the amount of$20,000,000.
The first call date for the 1986 bonds was September 4, 1996. The bonds were used to finance the
costs of acquiring, constructing, installing and equipping pollution control facilities, sewage
facilities, and solid waste disposal facilities to be owned by the Company or one of its subsidiary
companies. Because of the change in interest rates, the Company would like to refinance the
outstanding bonds to attain debt service savings. The 1986 bonds carry an interest rate of 7.375%.
The refinanced rate of interest is expected to be around 6.5%. The proposed refinancing will extend
the maturity of the bonds from 2014 to 2036. Ordinance No. 182,2006, authorizing and approving
the issuance and sale of the bonds,was unanimously adopted on First Reading on November 7,2006.
Bond counsel for Anheuser-Busch has requested this postponement in order to have additional time
to finalize the documents associated with this refinancing and to schedule closing dates.