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HomeMy WebLinkAboutCC Reso No 1999-03RESOLUTION NO. 99-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DECLARING ITS INTENTION TO REFUND THE OUTSTANDING BONDS OF ASSESSMENT DISTRICT. NO. 86-1; TO LEVY REASSESSMENTS AS SECURITY FOR THE REFUNDING BONDS; TO CONTINUE THE LIEN OF THE ORIGINAL ASSESSMENTS ON CERTAIN PARCELS OF PROPERTY IN THE ASSESSMENT DISTRICT, AND TO EMPLOY BOND COUNSEL, DISCLOSURE COUNSEL AND FINANCIAL ADVISOR WHEREAS, on November 2, 1990, the City of Lake Elsinore (the "City") issued and sold bonds for Assessment District No. 86-1 of the City of Lake Elsinore designated "City of Lake Elsinore, Northwest Sewer Assessment District No. 86-1, Limited Obligation Improvement Bonds" and such bonds remain outstanding in the aggregate principal amount of not more than $4,000,000 (the "Outstanding Bonds"); and WHEREAS, the City Council of the City (the "City Council") has been advised by the Finance Director of the City that due to favorable municipal bond interest rates, the Outstanding Bonds could be refunded at a significant savings in annual debt service to the property owners within the Assessment District; and WHEREAS, the City Council has determined, based on such advice, that the public interest requires the refunding of the Outstanding Bonds as permitted by and pursuant to proceedings to be conducted in accordance with the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highway Code of the State of Califomia (the "Refunding AcY'). NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Lake Elsinore as follows: Section 1. Refundin~; Continuation of Liens of Original Assessments. The City Council determines that the public interest requires the refunding of the Outstanding Bonds and declazes its intention to refund the outstanding Bonds, to issue bonds to refund the Outstanding Bonds (the "Refunding Bonds") and to levy reassessments on the parcels of property in the Assessment District as security for the Refunding Bonds, all pursuant to the Refunding Act. It is fiuther the intention of the City Council to continue the liens of the original assessments levied on pazcels of properry in the Assessment District, and which secure the payment ofthe principal of and interest oFthe Outstanding Bonds, as security for the payment of the unpaid installments of such assessments and the penalties and interest thereon, including the installments of such assessments which have been posted to and are to be collected on the tax assessment roll for the 1999-2000 fiscai yeaz and all unpaid and DK09720/98805 5 /528794.4 ~. delinquent installments of such assessments which were posted to the tax assessment roll for prior fiscal yeazs. Section 2. Report. The City Manager is authorized and directed to have Government Finance Group, the firm employed by the City to assist the City in the reassessment proceedings which are to be conducted pursuant to the Refunding Act (the "Reassessment Consultant"), prepaze and file with the City Clerk a report containing all of the matters required by Section 9523 of the Streets and Highways Code of the State of California (the "Report"). In preparing the Report, the Reassessment Consultant shall assume that the City will advance the maturity of all of the Outstanding Bonds to March 2, 1999, and that in refunding the Outstanding Bonds, the City will pay the principal amount thereof and accrued interest thereon to March 2, 1999, together with a premium to be negotiated with the Lake Elsinore Public Financing AuthoriTy. The Reassessment Consultant shall further assume that the maximum interest rate on the Refunding Bonds will be a percent to be determined by the Financing Consultant with the approval of the City Manager. Upon receipt of the Report, the City Clerk shall present it to the City Council for consideration. Section 3. Maximum Interest Rate on Refundin~ Bond. The maximum rate of interest on the Refunding Bonds shall not exceed 8.75% per annum. Section 4. Delinquent Assessment Installments. The CiTy staff and the Reassessment Consultant shall determine and make a recommendation to the City Council as to whether it is in the best interests of the City and the owners of parcels of property in the Assessment District as to which annual installments of the assessments thereon are unpaid and delinquent to include such delinquent installments, and the penalties and interest thereon, in the reassessments which will be levied on such parcels as security for the payment of the principal of and interest on the Refunding Bonds. Section 5. No City Obligation. The City Council determines, pursuant to Section 8769 of the Streets and Highways Code of the State of Califomia, that City will not obligate itself to advance available funds from the City Treasury to cure any deficiency which may occur in the bond redemption fund for the Refunding Bonds. Section 6. Consultants. For purposes of the reassessment proceedings and the issuance and sale of the Refunding Bonds, the law firm of Fulbright & Jaworski L.L.P. is employed as Bond Counsel and Disclosure Counsel to the City and the firm of Rod Gunn Associates, Inc. is employed as Financial Advisor to the City. The Mayor and City Clerk aze authorized and directed to execute contracts between such firms and the City in a form approved by the City Attorney. . DK09720/988055/528794.4 PASSED, APPROVED AND ADOPTED this 12th day of January, 1999. CITY OF LAKE ELSINORE By: T~c~ : ~ a~r~r~sr: ~~ Ci?y Clerk of the City of Lake Elsinore UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: aLOrtcr, ARINLEY, PAPE, KELLEY NOES: COtJNCILMEMBERS: NoNE ABSENT: COUNCILMEMBERS: rtETZs ABSTAIN: COLJNCILMEMBERS: NoNE APPROVED AS TO , CITY ATTORNEY DK09720/988055/528794 4 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a Regular Meeting of said Council on the 121h day of January, 1999, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: ALONGI, BffiNLEY, KELLEY, PAPE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: METZE 'CLERK CI;TY O~+ LAKE ELSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 99-3 of said Council, and that the same has not been amended or repealed. DATE: February 3,1999 1 ~./ .~,r~,~ R~FCHI ALASAD, CITY CLERK LI'~'Y OF LAKE ~LSINORE (S~~L,I