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1984-22 RESOLUTION NO. 84-22 A RESOLUTION OF 'THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PROVIDING FOR THE BORROWING OF FUNDS, FOR FISCAL YEAR 1984-85 AND THE ISSUANCE OF 1984-85 TAX AND REVENUE ANTICIPATION NOTES THEREFOR WHEREAS, pursuant tD Article 7 .6 (commencing with. Section 53850) of ,Chapter 4 of Part 1, Division 2 of Title 5 of the Government Code of the State of California, the City Council of . the City of Grand Terrace (the "Council") has found and determined that the ''sum of up to one' million .two hundred thousand dollars ($1, 200, 000) is needed for the requirements of the City of Grand Terrace, California (the "City" ) to satisfy obligations payable from the General Fund of the City, and that it is necessary that an amountlup to said sum be borrowed for such purpose at this time by the issuance of temporary -notes therefor in anticipation of the receipt of taxes, revenue and other moneys by the City for the General Fund of the City during or allocable to Fiscal Year 1984-85; and WHEREAS, the City intends to borrow, for the purpose set forth above, not to exceed one million two hundred thousand dollars ($1, 200, 000) , as specified in the Contract of Purchase hereinafter described, by t e issuance of the notes, as hereinafter defined; provided, however, that .in the event an approving iopinion of Nazare , Harper, Hopkins & McFarlin ( "Bond Counsel")!,, as to the notes clan only be delivered with respect to a cified in the Contract of Purchase, smaller amount than that spe without requiring the restricting of the yield on proceeds of the . notes, . then the amount to be sold by the City shall be reduced to. such smaller amount;, and WHEREAS, it appears; and the Council hereby finds and determines, that said sum, o�, one million two hundred thousand dollars ('$1, 200, 000) , when added to the interest payable thereon, does not !6xceed eighty-five percent (85%) of the estimated amount of the uncollected taxes,, revenue and other moneys of the City for the General Fund of the City attributable to fiscal year 1984-85, and available for the payment of said notes and the interest thereon; and WHEREAS, pursuant Jo! Section 53856 of the Government Code of the State of California, certain revenues which will be received by the City for the, General Fund of the City during and attributable to fiscal year 1984-85 can be pledged for the payment of said notes and the interest thereon ( as hereinafter provided) ; WHEREAS, Miller & Schroeder Municipals, Inc. , ( "the Purchaser" ) has submitted an offer to purchase said notes and has submitted a form of Contract of Purchase (herein called the "Contract of Purchase" ) to the City Council; NOW, THEREFORE, the Council of the City of Grand Terrace does resolve as follows: SECTION 1. All of the recitals herein set forth are _true and correct, and the City Council so finds and determines. SECTION 2. Solely for the purpose of anticipating taxes, revenue and other moneys to be received by the ,City for the General Fund of the City during or allocable to fiscal year 1984-85, and not pursuant to any common plan of financing, the City hereby determines to and shall borrow the aggregate principal sum to be specified in the Contract of Purchase (but not to, exceed one million two .hundred thousand dollars ( $1, 200, 000) , or such lesser amount as Bond Counsel can deliver an opinion on without requiring the restricting of the yield on the proceeds of the notes) , by the issuance of temporary notes under Sections 53850, et seq. of the California Government Code, designated "1984-85 Tax and Revenue Anticipation Notes" (the "notes" ) , to be numbered from 1 consecutively upward in order of issuance, to be in an even multiple of $25, 000, as specified by the Purchaser as provided in the Contract of Purchase, to be dated the date of delivery, to mature (without option of prior redemption) on June 30, 1985, and to bear interest, payable at maturity and computed on a 360-day year basis, at the rate or rates determined in accordance with the Contract of Purchase. Both the principal of and interest on the notes shall be payable, only upon surrender thereof, in lawful money of the United States of America, at the office of the City Treasurer, City of Grand Terrace, California. The notes will be sold to Purchaser on such terms as contained in the Contract of Purchase. SECTION 3. The notes shall be issued without coupons and shall be substantially in the form and. substance set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. SECTION 4. The Contract of Purchase for the notes is hereby approved and the Finance Director of other designated City official is hereby authorized to execute and deliver a Contract of Purchase, substantially in the form attached hereto as Exhibit B, but with such changes therein, deletions therefrom and modifications thereto as the Finance Director shall approve, such approval to be conclusively evidenced by his execution and delivery hereof. The Finance Director is further authorized to 2 determine 'the maximum pri:zci �al amount of Notes to be specified in _ the Contract of Purchase for sale by the City, up to one million two hundred thousand dollars ( $1, 200, 000) and to enter into the Contract of Purchase with the Purchaser in his sole discretion. i SECTION 5. The moneys so borrowed shall be deposited in the General Fund 'of the City and used and expended by the City for any purpose for which it is authorized to expend funds from the General Fund of the City. i SECTION 6. The principal amount of the notes, together, with the interest thereon, snall be payable from taxes, revenue and other moneys which are received by the City for the General Fund of the City for the fiscal year 1983-84. As security for the payment of the principal of and interest on the notes the City hereby pledges: the fir t $600, 000 of unrestricted moneys to be received by the City in the month of January 1985, the first $300, 000 of such moneys, �Io be received in the month of April 1985, and the first $300, 000 of such moneys, together with an amount sufficient to pay interest on the notes ( net of earnings on deposits in the Repaymeh� Fund, as hereinafter defined) , to be received in the month of June, 1985 (such pledged amounts being hereinafter called the "Pledged Revenues" ) , and the principal of the notesi and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the Pledged Revenues, and to the extent not so paid be paid from any other moneys of the City lawfully available, t:herefor. In the event that the principal amount of notes actually issued is less than one million two hundred thousand dollar's ( $1, 200, 000) , the amount to be pledged during each period shal!1 be reduced pro rata. In the event that there are insufficient moneys received by the City to permit the deposit into the Repaym,er t Fund, as hereinafter defined, - of the full amount of' the Pledged Revenues to be deposited in any accounting period, by the next to last business day of such accounting period, then the amount of any deficiency shall be satisfiediand made up from any other moneys of the City lawfully availablejfor the repayment of the notes and ,interest thereon. The term i"unrestricted ,m neys" shall mean taxes, income, revenue, cash receipts, and other moneys, intended as receipts for the General Fund of the City ana which are generally available for .the payment of current expenses and other obligations of the City. iSECTION 7. The Pledged Revenues shall be segregated by the, Cityiand held in a special fund or account designated "1984-85 Tax and Revenue Anticipation Notes Repayment Fund" (hereinafter referredlto as the "Repa�ment Fund") and applied as directed 'in this Resolution. Any mofiey deposited in the Repayment Fund, including, interest earned thereon, shall be held for the benefit of. the hlders of the notes, and until the notes and all interest thereon are paid or until provision has been made for the payment I 3 I of the notes at maturity with interest to maturity, the moneys in the Repayment Fund shall be applied only . for the purpose for which the Repayment Fund was created. On the date of maturity of the notes, the moneys in the Repayment Fund shall be used, to the extent necessary, to pay the principal of and interest on the notes. Any moneys remaining in the Repayment Fund after the notes and the interest thereon have been paid, or provision for such payment has been made, shall be available to the City for deposit' in its General Fund. Moneys in the Repayment Fund shall be invested as permitted by California Government Code Section 53601, and no such investments shall have a maturity date later than the maturity date of the notes. The proceeds of any such investments shall remain in the Repayment Fund until all of the notes have been fully paid, at which time any excess amount shall be available to the General Fund of the .City. SECTION 8. The Mayor and the Treasurer are hereby authorized to sign the notes by manual or facsimile signature, and the City Clerk is hereby authorized to countersign the same by use of his or her facsimile impression thereon. Said officers are hereby authorized to cause the blank spaces thereof to be filled in as may be appropriate, and to deliver the notes to the Purchaser in accordance with the Contract of Purchase. SECTION 9. It is hereby covenanted and warranted by the City that all representations and recitals contained in this Resolution are true and correct, and that the City, and its appropriate officials, have duly taken all proceedings necessary to be taken by them, and will take any additional proceedings necessary to be taken by them, for the .levy, collection and enforcement of the taxes , revenue, cash receipts and other moneys pledged hereunder in accordance with law and for carrying out. the provisions of this Resolution. SECTION 10. The City Council, as issuer of the notes on behalf of the City, hereby covenants that it will make no use of the proceeds of the notes which would cause the notes to be "arbitrage bonds" under section 103(c) of the Internal Revenue Code of 1954, as amended; and, to that end, so long as any of the notes are outstanding, the issuer, with respect to the proceeds of the notes, and all officers having custody or control of such proceeds, shall comply with all requirements of said section and the regulations of the United States Department of the Treasury thereunder, to the extent that such regulations are, at the time, applicable and in effect, so that the notes will not be or become "arbitrage bonds" . 4 SECTION 11. The Purchaser is authorized and directed to -- prepare and distribute alErivate Placement Memorandum or Official .Statement, ! describing the City and the proposed financing, for use in the marketing of the notes; such documents are subject to the review and approval of , the chief financial officer of the City and Bond Counsel prior to distribution. ADOPTED this 28th day of June, 1984. ATTtST: _ Gity, C1 rk of the City of and P�ayo 'o y of sand 56-rrac:e�and of .the City C<•dhcil Terrace Na� . o the Cit ther feo _ Council thereof. Approved as to form: Vk City Attorney 9 - I I 1 i i i i - 5 - i EXHIBIT A CITY OF GRAND TERRACE, CALIFORNIA 1984-85 TAX AND REVENUE ANTICIPATION NOTE NO. $ FOR VALUE RECEIVED, the City of Grand Terrace (the "City" ) , a municipal corporation, situated in the County of San- Bernardino, State. of Call i fornia, and organized and existing under the laws of the State of California, hereby acknowledges itself indebted to and promises to pay to the bearer hereof, at the office ofl the City Treasurer, City of Grand Terrace, California, the principal sum of DOLLARS ($ ) in lawful money of the ,Unitld States of America, on June 30, 19851 together with interest thereon at the rate of � I PERCENT ( %) per annumlin like lawful money from the date hereof until payment in full of said principal sum. Both the principal of and interest on this note shall be payable only upon surrender of this note as the same shall fall due;.lprovided, however, no- interest shall be payable for any period '.after maturity during which the holder hereof f ails to properly present this note for payment. It is hereby ce tified, recited and declared that this note is one of an authorized issue of notes in the aggregate principal, amount of one million two hundred thousand dollars ($1, 200, 600) , all of like tenor, made, executed and given pursuant to and by authority of a Resolution of the City Council of the City duly adopted on June 28, 1984, under and by authority of Article 7. 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, California Government Code, and that all acts, conditions and. thizgs required to exist, happen and be performed precedent to and in the issuance of this note have existed, happened and been performed in regular and due time, form -and manner as required bj law, and that this note, together with all other indebtedness azd obligations of the City, does not exceed any limit prescribed by the Constitution or statutes of the State of California. The aggregate principal amount of the notes, together with the interest thereon, shall be payable from taxes,. revenue and other moneys which are received by the City for the General Fund of the City for the fiscal year 1984-85. As security for the payment of the principal of and interest on the notes the City pledged (i) the first $600,I000 of "unrestricted moneys" , as _ I hereinafter defined, to be received by the City in -the month of January 1985, (ii) the first $300, 000 of such moneys to be _ received in the month of April 1985, and. (iii) the first $300, 000 of such moneys, ' together with an amount sufficient to pay interest on- the notes (net of earnings on deposits in the pledged fund) to be received in the month of June 1985 (such pledged amount -being hereinafter called the "Pledged Revenues" ) , and. the principal of the notes and the interest thereon shall constitute a first lien and charge thereon and shall �be payable from such Pledged Revenues, and to the extent not so paid shall be paid from any other moneys of the City lawfully available therefor.. The term "unrestricted moneys" shall mean taxes, income, revenue, cash receipts, and other moneys, intended as receipts for the General Fund of the City and which are generally available for the payment of current expenses and other obligations of the City. IN WITNESS -WHEREOF, the City of Grand Terrace has caused this note to be executed by the Mayor of the City and the City Treasurer and countersigned by the City Clerk, and caused its official seal to be affixed hereto this day of 1984. y CITY OF GRAND TERRACE By Mayor Countersigned: [SEAL] By City Treasurer BY City Clerk 2 STATE OF CALIFORNIA )! COUNTY OF SAN BERNARDINO ) ss. CITY OF GRAND TERRACE ) I MYRNA ERWAY, City C1Erk of the City of Grand Terrace, DO HEREBY CERTIFY that the foregoing, Resolution was duly adopted by the 'City Council of said City at a regular meeting of the City Council held on the 28th day of June, 1984, and that it was so adopted by the following vote: V ES: Councilmembers Rigley, Petta, Pfennighausen; Mayor Grant . HUES: None. A3SENT: Councilman Nix City C l eW of the City of Grand l;'qrrace.- and of t¢re City Council the6e-'. - i STATE OF 7ALIFORNIA ) COUNTY OF SAN BERNARDINO ) Fs. CITY OF GRAND TERRACE ) I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY CERTIFY that the above and foregoing-is a full , true, and correct copy of Resolution No. 84-22 of said City, and that the same has not been amended or repealed. FATED: June 28, 1934. city L194rA of the City of Ura.nq�mace: : and of e City Council thereo. !