1993 CC ADJ MIN SEP 27 - Laserfiche WebLink

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In accordance. with Meeting of the City given date at 6:07 Gonzales presiding. ROLL CALL .ADJOURNED CITY COUNCIL MEETING SEP'TE.XBER 27o 1993 notice duly and legally given, an Council of the City of Colton was P. M., in the Council Chambers of Adjourned Regular held on the above City Hall, Mayor Councilrembers present were Sandoval, Rios, Cisneros, Beltran, Cook and Mayor Gonzales. Also present were City Attorney Biggs, City Manager Young and City Cleric Ramos. Absent was Council.member Bennett. CITY MANAGER: City Manager Young stated the City Treasurer had an urgency matter that he would like to bring before the City Council. and. five votes are needed to place the matter on tonight's agenda. Moved by Councilmember Cisneros, seconded by Councilmember Sandoval., to declare the City Treasurer's ,item as an urgency matter, having occurred after the posting of the Agenda. motion carried. Unanimous vote upon roll call. CITY TREASURER: City Treasurer Michael Williams reported he is bringing this item forward because time is critical and it is important to that the City take action regarding the Single Family Mortgage Revenue Bond Issue. Treasurer Williams presented the history of the $20,000,003 City of Colton 1985 Single Family residential Mortgage Bond issue and, explained the three categories of bonds that were issued. They were current interest bonds, capital appreciation bonds "CABS", and subordinated capital appreciation bonds. Mr. Williams outlined the problem as follows: The insurance company that provides the guaranteed investment contract is Atlantic Capital.. It is not a large company by industries standards. Because the market rates for guaranteed investments contracts is much lower now, the ability for Atlantic Capital or anyone else to invest new money at the old higher rates promised is difficult if not impossible. Where is concern ,about the ability for Atlantic Capital to honor its contract and possibly to declare bankruptcy as was done by Executive Life some gears ago. If this happens, there would be no money available to pay debt