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HomeMy WebLinkAboutResolution No. 2706 RESOLUTION NO. 2706 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY PROVIDING FOR THE TEMPORARY BORROWING OF FUNDS, SETTING OF APPROPRIATIONS AND AUTHORIZING EXPENDITURES FOR THE GOLF COURSE DRIVING RANGE WHEREAS, the City of Downey, a Municipal Corporation of the State of California, desires to avail itself of the provisions of Article 7.6, Chapter 4, Part 1, Division 2, Title 5 of the California Government Code for the purpose of borrowing, temporarily, a sum not to exceed $150,000.00 in anticipation of revenue receipts by the City during fiscal year 1972 -73, commencing July 1, 1972 and ending June 30, 1973, AND WHEREAS, Section 53858 of said Government Code provides that notes shall not be issued pursuant to said Article 7.6 in any fiscal year in an amount which, when added to the interest payable thereon, shall exceed eighty -five percent (857) of the estimated amount of existing uncollected taxes, income, revenue, cash receipts, and other moneys of the City available in said fiscal year for payment of said note and the interest thereon. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE AS FOLLOWS: SECTION 1. The anticipated revenue receipts of the City of Downey for fiscal year 1972 -73 presently uncollected and available for payment of the note to be made pursuant to this Resolution, and any interest thereon, is in excess of $8,000,000.00. SECTION 2. No sums heretofore have been borrowed by the City of Downey in anticipation of the receipt of taxes, income, revenue, cash receipts, or other funds for the fiscal year 1972 -73. SECTION 3. The Director of Finance is hereby authorized to borrow from the Bank of America N.T. & S.A. pursuant to the authority recited above a total sum of $150,000.00 to be evidenced by a note in that amount to bear interest at the rate of 3.01% per annum, to mature on June 30, 1973 and otherwise in the form and substance expressed in EXHIBIT 'A' to this Resolution, incorporated herein by reference. SECTION 4. Said money shall be borrowed upon adoption of this Resolution for the exclusive purpose set forth in Section 7 below. SECTION 5. For the prompt payment of the principal and interest on the note so issued, the City of Downey hereby pledges such revenues to be received during the fiscal year 1972 -73 as shall be necessary to pay the note principal and interest payable thereon. SECTION 6. The aforesaid note, upon issuance, shall be signed by the Mayor, who is authorized to execute same, and by the Director of Finance, who is authorized and directed to countersign same, and by the City Clerk who shall seal said note for and on behalf of the City, and said execution, countersign and seal shall constitute a valid and sufficient note execution. SECTION 7. For the construction of and purchase of material for the golf course driving range, a total amount of $150,000.00 is appropriated for the Golf Course Fund contingent upon execution of the note authorized in Section 3 above. The City Manager is authorized to expend said amount for the purpose herein specified in accordance with applicable law. SECTION 8. The City of Downey hereby covenants that all representations and recitals contained in this Resolution are true and correct, and that the City, and its appropriate officials, have duly taken and will take all proceedings necessary for the levy, collection, and enforcement of the revenues herein pledged in accordance with law to fulfill all specified pledges herein. SECTION 9. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 25th day of July, 1973. r it i'" -) ), tx 4 tt -- H Mayor Pro Tempore ATTEST: Z, 2': r L � � � ems' .(---; '\1,- `'•>, M ,.. "'� City C lerk I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Downey at a regular meeting thereof held on the 25th day of July , 1973, by the following vote, to wit: AYES: 3 Councilmen: Jennings, Temple, Morton NOES: 1 Councilmen: DiLoreto ABSENT: 1 Councilmen: Winton / 2 , --- // i 62 , / 4 -, ,,, / 4 ) City Clerk - 2- CITY OF DOWNEY REVENUE ANTICIPATION NOTE FISCAL YEAR 1972 -73 • July 25, 1972 • $150,000.00 • FOR VALUE received, the City of Downey, a municipal corporation of the State of California, promises to pay to the order of Bank of America N.T. & S.A. on or before , Tune 29 1973 the sum of One Hundred Fifty Thousand and no /100 Dollars ($150,000.00) with interest thereon, payable at the maturity thereof, at the rate of 3.01% per annum from the date hereof. Both principal and interest shall be payable in lawful money of the United States of America 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. This note is made, executed, and given pursuant to and by authority of Resolution No. 2706 of the City Council of the City of Downey duly passed and adopted on July 25, 1972 under and by authority of Article 7.6, Chapter 4, Part 1, Division 2, Title 5 of the California Government Code. All other indebtedness of the City does not exceed any debt limit prescribed by the laws or Constitution of the State of California. • Pursuant to said Resolution No. 2706 , there is pledged for the payment of the principal of this note and interest payable thereon such revenues to be received by the City of Downey during the fiscal year as are necessary to pay such principal and interest. Notwithstanding said pledge, this note is a general obligation of the' City and, to the extent not paid from said funds, shall be paid with interest thereon from any other funds of the City lawfully available therefor. 4 IN WITNESS WHEREOF, the City of Downey has caused this note to be executed by the signature of the Mayor, countersigned by the Director of Finance and attested to by the City Clerk, with its official seal affixed hereto this 25th day of - July , 1972. CITY OF DOWNEY 1. ) - J .Th Mayor Director of Finance • ATTEST: City Clerk • EXHIBIT 'A'