Loading...
1984-28 RESOLUTION NO. 84-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO. 84-22 AND 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 to Article 7. 6 (commencing with Section 53850) of Chapter 4 of Part 1 of 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 amount up 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 the issuance of the Notes, as hereinafter defined; provided, however, that in the event an approving opinion of Nazarek, Harper, Hopkins & McFarlin ( "Bond Counsel" ) , as to the Notes can only be delivered with respect to a smaller amount than that specified in the Contract of Purchase, 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 of one million two hundred thousand dollars ('$1, 200, 000) , when added ,to the interest payable thereon, does not exceed eighty-five percent (850) 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 the Notes and the interest thereon; and WHEREAS, pursuant to 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 the Notes and the interest thereon ( as hereinafter provided) ; WHEREAS, Miller & Schroeder Municipals, Inc. , ( "the Purchaser" ) has submitted an offer to purchase the 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 July 3, 1984, to mature (without option of prior redemption) on July 2, 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 principal corporate trust office of Security Pacific Bank in Los Angeles, California, as paying agent of the City. The Notes will be sold to the 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 i determine the maximum principal 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. 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. SECTION 6. The 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 hereby pledges: the first $300, 000 of unrestricted moneys ( as hereinafter defined) to be received by the City in the month of December 1984, the first $500, 000 of such moneys to be received in the month of January 1985, the first $400, 000 of such moneys to be received in the month of April 1985 and the first moneys in an amount sufficient to pay interest on the Notes ( net of earnings on deposits in the Repayment 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 Notes 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 therefor. In the event that the principal amount of notes actually issued is less than one million two hundred thousand dollars ( $1, 200, 000) , the amount to be pledged during each period shall be reduced pro rata. In the event that there are insufficient moneys received by the City to permit the deposit into the Repayment 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 satisfied and made up from any other moneys of the City lawfully available for the repayment of the Notes and interest thereon. 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. SECTION 7 . The Pledged Revenues shall be segregated by the City and held in a special fund or account designated '1984-85 Tax and Revenue Anticipation Notes Repayment Fund" (hereinafter referred to as the "Repayment Fund") and applied as directed in this Resolution. Any money deposited in the Repayment Fund, including interest earned thereon, shall be held for the benefit of the holders of .the Notes, and until the Notes and all interest thereon are paid or until provision has been made for the payment 3 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 Finance Director 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 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 a Private 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. SECTION 12. This resolution rescinds, supercedes and replaces the prior resolution of the same title adopted by the City Council on June 28, 1984 as Resolution No. 84-22. PASSED, APPROVED AND ADOPTED this 20th day of July 1984. r _ Hu hk ® Ma yo r ""M--yrna�E�ay, City Clerk /1 I, Myrna Erway, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing resolution was introduced and adopted at a saeci-al meeting of the City Council of the City of Grand Terrace held on the 20th , day of July 1984, by the following vote: AYES: COUNCILMEMBERS: Grant ; Petta ; Nix ; Pfennighausen . NOES: COUNCILMEMBERS:. None ABSENT: COUNCILMEMBERS: Risley ABSTAIN: COUNCILMEMBERS: None Myrna 1 ay, City Cl-roc - A 1PnnROOAV__ED AS TO FORM: ,IDYfYw� r • " _ ___ Gebrge W. McFarlin, Special Counsel l 5 EXHIBIT A CITY OF GRAND TERRACE, CALIFORNIA 19844-85 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 California, 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 principal corporate trust office of Security Pacific Bank in Los Angeles, California, the principal sum of DOLLARS ($ ) in lawful money of the United States of America, on July 2, 1985, together with interest thereon at the rate of PERCENT ( % ) per annum in 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; provided, however, no interest shall be payable for any period after maturity during which the holder hereof fails to properly present this note for payment. It is hereby certified, 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, 000) , 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 July 20, 1984, under and by authority of Article 7. 6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5 of the California Government Code, and that all acts, conditions and things 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 by law, and that this note, together with all other indebtedness and 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 $300, 000 of "unrestricted moneys" , as hereinafter defined, to be received by the City in the month of December 1984, ( ii) the first $500, 000 of such moneys to be . . received in the month of January 1985, ( iii) the first $400, 000 of such moneys to be received in the month of April 1985 and ' (iv) the first moneys in .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 and the Finance Director of the City and countersigned by the City Clerk, and caused its official seal to be affixed hereto this 3rd day of July, 1984. CITY OF GRAND TERRACE By Mayor Countersigned: [SEAL] By Finance Director By City Clerk 2