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RESOLUTION NO. R-44-07 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />COLTON PROVIDING FOR THE ISSUANCE OF ONE OR <br />MORE SERIES OF CITY OF COLTON TAXABLE PENSION <br />OBLIGATION BONDS, AND APPROVING THE FORMS OF <br />AND AUTHORIZING THE EXECUTION AND DELIVERY OF <br />AN INDENTURE RELATING THERETO, AND <br />AUTHORIZING A VALIDATION ACTION AND <br />AUTHORIZING CERTAIN OTHER ACTIONS IN <br />CONNECTION THEREWITH <br />WHEREAS, the City council of the City of Colton (the "City Council" and the "City", <br />respectively) adopted a retirement plan pursuant to the Public Employees' Retirement Law, <br />commencing at Section 20000 of the Government Code of the State of California, as amended <br />(the "PERS Law"); <br />WHEREAS, among other things, the PERS Law obligates the City (1) to amortize the <br />unfunded accrued actuarial liability to the California Public Employees' Retirement System <br />(including any successor system established by the State of California, (the "State Retirement <br />System"), with respect to pension benefits for its employees who are members thereof, and (2) to <br />make annual contributions to the State Retirement System to fund pension benefits for said <br />employees; <br />WHEREAS, the obligation of the City to pay its unfunded accrued actuarial liability to <br />the State Retirement System and its normal annual contribution to the State Retirement System <br />for its police, fire and miscellaneous pension plans (collectively, the "PERS Obligation") is <br />evidenced by a contract between the City and the State Retirement System, dated as of July 1, <br />1945, as amended thereafter from time to time (collectively, the "PERS Contract"); <br />WHEREAS, as of June 30, 2007, based upon the actuarial report of the State Retirement <br />System, the City will have an obligation of approximately $28,000,000 pursuant to the PERS <br />Law as an unfunded accrued actuarial liability of the State Retirement System; <br />WHEREAS, the City currently has a normal annual contribution obligation of <br />approximately $6,000,000; <br />WHEREAS, the City desires to issue its taxable pension obligation bonds in one or more <br />series (the "Series 2007 Bonds") in an aggregate principal amount equal to the sum of (a) the <br />principal amount not to exceed the total amount of the PERS Obligation, (b) the costs of issuance <br />of the Series 2007 Bonds (including underwriters' discount), and (c) the original issue discount (if <br />any) on the Series 2007 Bonds, for the purpose of refunding the PERS Contract and thereby <br />providing funds to the State Retirement System for investment; <br />WHEREAS, the City desires to authorize the issuance of additional pension obligation <br />bonds (the "Additional Bonds," and together with the Series 2007 Bonds, the "Bonds") for the <br />purpose of refunding any additional PERS Obligations, in the future from time to time; <br />RVPUB\FBAUM\729339.1 I <br />