HomeMy WebLinkAbout1987-168-11/03/1987-FEDERAL SECURITIES IMPROVEMENT BONDS REVENUE REFUNDING SALES AND USE TAX SUBSTITUTION RESOLUTION 87-168
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE SUBSTITUTION OF CERTAIN
FEDERAL SECURITIES FOR CERTAIN OTHER
FEDERAL SECURITIES PURCHASED IN ACCORDANCE WITH
THE ESCROW AGREEMENT EXECUTED IN CONNECTION WITH
THE ISSUANCE OF CITY OF FORT COLLINS, COLORADO,
SALES AND USE TAX REVENUE REFUNDING AND
IMPROVEMENT BONDS, SERIES 1986, DATED AUGUST 1,
1986, IN THE AGGREGATE PRINCIPAL AMOUNT OF
$30,060,000.
WHEREAS, the City of Fort Collins, Colorado (the City) , has heretofore
issued and sold its Sales and Use Tax Revenue Refunding and Improvement
Bonds, Series 1986, dated August 1, 1986, in the aggregate principal amount
of $30,060,000 (the Bonds) , and in connection therewith has executed an
Escrow Agreement, dated as of August 1, 1986 (the Escrow Agreement) ,
between the City and First Interstate Bank of Fort Collins, N.A. (the
Escrow Bank) , creating an escrow to provide for the payment of its Sales
and Use Tax Revenue Bonds, dated August 1, 1981, in the aggregate principal
amount of $5,700,000, its Bond Anticipation Notes, Series October 1, 1982,
dated October 1, 1982, in the aggregate principal amount of $3,300,000, its
Sales and Use Tax Revenue Bonds, dated October 1, 1982, in the aggregate
principal amount of $3,360,000, its Sales and Use Tax Revenue Bonds, dated
December 1, 1982, in the aggregate principal amount of $1,215,000, and its
Sales and Use Tax Revenue Bonds, dated November 1, 1984, in the aggregate
principal amount of $11,750,000 (the Prior Bonds) ; and
WHEREAS, the Escrow Agreement permits the City and the City and the
Escrow Bank to substitute Federal Securities (as defined in the Escrow
Agreement) for Federal Securities purchased in accordance with the Escrow
Agreement and described in Exhibit A thereto provided that prior to such
substitution the Escrow Bank shall have received a report prepared by a
certified public accountant or a firm of certified public accountants
licensed to practice in the State of Colorado verifying the sufficiency of
the escrow deposit (including such substituted Federal Securities) to pay
the Debt Service Requirements (as defined in the Escrow Agreement) and an
opinion of nationally recognized bond counsel that such substitution will
not cause the Bonds to become "arbitrage bonds" within the meaning of
Section 103(c) of the Internal Revenue Code of 1954, as amended; and
WHEREAS, the City has identified certain of the original Federal
Securities held in the escrow for the payment of the Prior Bonds which
maybe sold for the advantage of the City and certain other Federal
Securities which may be substituted therefor for the further advantage of
the City; and
WHEREAS, the City has contracted for the sale of the original Federal
Securities with Dillon, Read & Co. , Inc. and subscribed for the purchase of
the substitute Federal Securities with the Federal Reserve Bank, Denver
Branch; and WHEREAS, The City has retained the accounting firm of Peat
Marwick Main & Co. to verify the sufficiency of the escrow containing the
substituted Federal Securities and the law firm of Ballard, Spahr, Andrews
and Ingersoll to render the required tax opinion.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
1 . Authorization of Substitution. The Finance Director is hereby
authorized to complete the sale and purchase of the Federal Securities as
described above subject to compliance with all the conditions to
substitution imposed by the Escrow Agreement.
2. Authorization of Documents. The appropriate City officials are
hereby authorized to prepare and execute all such agreements, exhibits and
certificates as may be necessary to effect the substitution of the Federal
Securities as described above and in accordance with the Escrow Agreement.
3. Ratification of Actions. All actions heretofore taken by the City
and by the officers thereof not inconsistent herewith directed toward the
substitution of the Federal Securities are hereby ratified, approved, and
confirmed.
4. Reoealer of Measures. All resolutions, acts, orders, or parts
thereof of the City in conflict with this Resolution are hereby repealed,
except that this repealer shall not be construed so as to revive any
resolution, act, order, or part thereof heretofore repealed.
5. Severability. If any paragraph, clause, or provision of this
Resolution is judicially adjudged invalid or unenforceable, such judgment
shall not affect, impair, or invalidate the remaining paragraphs, clauses,
or provisions hereof, the intention being that the various paragraphs,
clauses, or provisions hereof are severable.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 3rd day of November, A.D. 19 7.
ATTEST:
City Clerk