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HomeMy WebLinkAboutReso 1987-13006 RESOLUTION NO. 13006 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $162,156.82 FOR THE RESERVE FUND AS PROVIDED IN THE ISSUANCE OF BONDS PURSUANT TO THE "IMPROVEMENT ACT OF 1915" FOR SPECIAL ASSESSMENT DISTRICT KNOWN AND DESIGNATED AS ASSESSMENT DISTRICT NO. 85-1 (LAS FLORES DRIVE) The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City Council at its meeting of April 14, 1987 formed Assessment District No. 85-1 (Las Flores Drive), and WHEREAS, it is necessary to appropriate $162,156.82, which amounts to 10% of the confirmed assessment, for the reserve fund, and WHEREAS, monies in the City funded reserve fund shall be utilized and applied as follows: a. Amounts in said reserve fund shall be transferred to the redemption fund for the bonds if as a result of delinquencies in the payment of assessments there are insufficient monies in said redemption fund to pay principal of and interest on the bonds. Amounts so transferred shall be repaid to the reserve fund from proceeds from the redemption or foreclosure of property with respect to which an assessment is unpaid and from payments of the delinquent assessments. b. Interest earned on monies in the reserve fund shall accrue to the reserve fund only to the extent that the amount of interest credited thereto shall not result in the bonds becoming "arbitrage bonds" as defined in Section 148 of the Internal Revenue Code of 1986 (the "Code") and the regulations promulgated thereunder, and any excess amount shall be credited back to the General Fund of the City. c. Upon the discharge of all assessments and bond obligations, the monies in the reserve funds shall return to and become part of the General Fund of the City and said monies are not to be utilized to assist in the discharge of assessments but are strictly set aside as a loan to assist in the purchase of properties resulting from delinquencies in the payment of the assessments. -1- NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does appropriate ~162,156.82 from the unappropriated balance of the General Fund to Reserve Fund No. 544 (Las Flores Drive Assessment District 85-1 Special Reserve Fund) as provided in the issuance of bonds pursuant to the "Improvement Act of 1915" for special assessment district known and designated as Assessment District No. 85-1 (Las Flores). Presented by Approved as to form by J~hn P. Lip~itt, birector of ~ T'homas J//~arron, City Attorney P~blic Works/City Engineer ~ . 2811a ',' ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, Ibis 2~th day of A?'i] 19 , s7 , by the following vote, to-wit: AYES: Councilmembers Halcolm, HcCandliss, Cox, Hoar% Nader NAYE$: Councilmembers None ABSTAIN: Counci lmembers None ABSENT: Counci ]members None Mayor~of t~e City of -'~l~;'la Vista ATTEST ~-~-City ~lerk .z ~---~-~y ~ CATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, CaNfornio, DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of RESOLUTION NO. 13006 ,and that the same has not been amended or repealed. DATED_ City Clerk criY OF CHUIA VISTA CC-660