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HomeMy WebLinkAbout1456 • RESOLUTION NO. 1456 RESOLUTION OF THE COUNCIL OF THE CITY OF THE TOWN OF LOS ALTOS HILLS PROVIDING FOR THE BORROWING OF FUNDS FOR FISCAL YEAR 1982-1983 AND THE ISSUANCE OF 1982 TAX AND REVENUE ANTICIPATION NOTE THEREFOR WHEREAS, pursuant to Sections 53850 et seq. of the Government Code of the State of California, this Council (the "Council") has found and determined that the sum of Four Hundred Thousand Dollars ($400,000) is needed for the requirements of the City of the Town of Los Altos Hills (the "City"), a municipal corporation duly organized and existing under the laws of the State of California, to satisfy obligations payable from the General Fund of the City, and that it is necessary that said sum be borrowed for such purpose at this time by the issuance of a temporary note therefor in anticipation of the receipt of taxes, revenue and other moneys to be received by the City for the General Fund of the City during or allocable to Fiscal Year 1982-1983; and WHEREAS, it appears, and the Council hereby finds and determines, that said sum of Four Hundred Thousand Dollars ($400,000) , when added to the interest payable thereon, does not exceed 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 1982-1983 and available for the payment of said note and the interest thereon (as hereinafter provided); and WHEREAS, University National Bank & Trust Company, of Palo Alto, California, has offered to lend the City the sum of Four Hundred Thousand Dollars ($400,000) and thereby purchase the Note from the City, and the Council approves of said offer; NOW, THEREFORE, the Council of the City of the Town of Los Altos Hills hereby finds, determines, declares and resolves as follows: Section 1. Recitals True and Correct. All of the recitals herein set forth are true and correct, and the Council so finds and determines. Section 2. Issuance and Terms of Note. 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 1982-1983, and not pursuant to any common plan of financing, the City hereby determines to and shall borrow the aggregate principal sum of Four Hundred Thousand Dollars ($400,000) from University National Bank & Trust Company by the issuance of a • • temporary note under Sections 53850 et seq. of the Government Code of the State of California, designated "City of the Town of Los Altos Hills 1982 Tax and Revenue Anticipation Note" (the "Note"), •to be in the denomination of $400,000, to be dated the date of delivery to the purchaser, to mature on June 30, 1983, (subject to right of prepaymentas provided in Section 3) and to bear interest, payable at maturity and computed on a 30-day month/360-day year basis, at the rate often percent (10%) per annum. Both the principal of and interest on the Note shall be payable, only upon surrender thereof, in lawful money of the United States of America, at the office of the City Treasurer. Section 3. Right of Prepayment. The City shall have the right at its option to prepay the Note at any time, in whole or in part, at a prepayment price equal to the principal amount to be prepaid plus accrued interest on such principal amount. Section 4. Form of Note. The Note shall be issued without coupons and shall besubstantially h 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 5. Use of Proceeds. 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. Security. The principal amount of the Note, 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 1982-1983 and lawfully available for the payment of the Note. As provided in Section 53857 of the California Government Code, the Note shall be a general obligation of the City payable from any moneys of the City lawfully available therefor. Section 7. Sale of Note. The offer of University National Bank & Trust Company, of Palo Alto, California, to purchase the Note is hereby accepted and the appropriate officers of the City are hereby authorized and directed to execute and deliver the Note to said purchaser upon payment to the Treasurer of the purchase price of $400,000. Section 8. Execution of Note. The City Manager is hereby authorized to execute the Note by manual signature, and the City Clerk is hereby authorized to countersign the same by manual signature and to affix the seal of the City thereto manually, and said officers are hereby authorized to cause the blank spaces thereof to be filled in as may be appropriate. Section 9. Official Action. The Mayor, the City Manager, the City Treasurer and the City Clerk, or any of them, are further authorized and directed to make, execute and deliver to University National Bank &Trust Company, as purchaser of the Note, (a) a certificate in the form customarily required by purchaser of bonds of public corporations generally, certifying to the genuineness and due execution of the Note, (b) a receipt in similar form 2 411 • evidencing the payment of the purchase price of the Note, which receipt shall be conclusive evidence that said purchase price has been paid and has been received by the City, and (c) a certificate attesting to the use of the proceeds of the Note, the investment thereof, and any other matters relating to the tax exemption of the Note pursuant to Section 103(c) of the Internal Revenue Code of 1954, as amended. Any purchaser or subsequent take or holder of the Note is hereby authorized to rely upon and shall be justified in relying upon any such certificate or receipt with respect to the Note executed pursuant to the authority of this resolution. Such officers and any other officers of the City are hereby authorized to execute any and all other documents required to consummate the sale and delivery of the Note. Section 10. Covenants and Warranties. 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 taken by them, and will take any additional proceedings necessary to be taken by them, for the prompt collection and enforcement of the taxes, revenue, cash receipts and other moneys from which the Note is payable, in accordance with law and for carrying out the provisions of this Resolution. Section 11. Arbitrage Covenant. This Council, as issuer of the Note on behalf of the City, hereby covenants that it will make no use of the proceeds of the Note which would cause the Note to be an "arbitrage bond" under Section 103(c) of the Internal Revenue Code of 1954, as amended; and, to that end, so long as the Note is outstanding, the issuer with respect to the proceeds of the Note, and all officers having custody or control of such proceeds, shall comply with all requirements of said section and of 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 Note will not be an "arbitrage bond." Section 12. Effective Date. This resolution shall take effect from and after its passage and adoption. PASSED AND ADOPTED by the Council of the City of the Town of Los Altos Hills, California, this 7th day of July, 1982, by the following vote: AYES: Mayor Perkins, Councilmembers Allison, Hillestad and Proft NOES: None ABSENT: Councilwoman Van Tamelen �,.^. � Mayor (SEAL) _ Attest: { City Clerk 3 �I - • • EXHIBIT A CITY OF THE TOWN OF LOS ALTOS HILLS . 1982 TAX AND REVENUE ANTICIPATION NOTE $400,000 Date: July , 1982 FOR VALUE RECEIVED, the City of the Town of Los Altos Hills (the "City") , State of California, acknowledges itself indebted to and promises to pay to University National Bank & Trust Company, at the office of the City Treasurer, the principal sum of FOUR HUNDRED THOUSAND DOLLARS ($400,000) in lawful money of the United States of America, on June 30, 1983, (subject to the right of prepayment hereinafter referred to) together with interest thereon at the rate of 10% 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 properly to present this Note for payment. This Note is subject to prepayment at the option of the City at any time, in whole or in part, at a prepayment price equal to the principal amount to be prepaid plus accrued interest on such principal amount. It is hereby certified, recited and declared that this Note has been issued pursuant to the provisions of Resolution No. of the Council of the City duly passed and adopted on July 7, 1982, and pursuant to Article 7.6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5, of the California Government Code, and that all things, conditions and acts 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 principal amount of this Note, 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 1982-1983 and lawfully available for the payment of this Note. As provided in Section 53857 of the California Government Code, this Note shall be a general obligation of the City payable from any moneys of the City lawfully available therefor. A-1 O • IN WITNESS WHEREOF, the City of the Town of Los Altos Hills has caused this Note to be executed by the City Manager and countersigned by the City Clerk, and caused its official seal to be affixed hereto all as of the day and year first above written. CITY OF THE TOWN OF LOS ALTOS HILLS By City Manager (SEAL) Countersigned: ' City Clerk • A-2