HomeMy WebLinkAboutReso. 1980 - 163 - Establishing bond reserve fund - North Canby Road Area Sewer Assessment District 1980-1 4 •
RESOLUTION NO.
RESOLUTION ESTABLISHING BOND RESERVE FUND
NORTH CANBY ROAD AREA SEWER ASSESSMENT DISTRICT 1980-1
The City Council of the City of Redding resolves :
1. There is hereby created a special fund to be desig-
nated Special Reserve Fund, North Canby Road Area Sewer Assessment
District 1980-1, City of Redding, Shasta County, California.
2. Out of the proceeds of the sale of improvement bonds
to represent unpaid assessments in North Canby Road Area Sewer
Assessment District 1980-1 , there shall be deposited in the
special reserve fund the amount designated for this purpose in the
report required by Section 10204 of the Streets and Highways Code
and approved by this City Council , reduced by an amount which bears
the same ratio to the amount set forth in the report as the amount
of assessments paid in cash bears to the total amount of assessments.
3 . During the term of the improvement bonds , the money in
the special reserve fund shall be available for transfer into the
redemption fund for the bonds pursuant to Section 8808 of the Streets
and Highways Code. The amount so advanced shall be reimbursed to the
special reserve fund from the proceeds of redemption or sale of
the parcel for which payment of delinquent assessment installments
was made from the special reserve fund.
4 . If any assessment is prepaid prior to the final
maturity of the bonds, the amount of principal which the assessee is
required to prepay shall be reduced by an amount which is in the
same ratio to, the original amount of the special reserve fund,
together with accrued interest, as the original amount of the prepaid
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assessment bears to the total amount of assessments originally
levied in North Canby Road Area Sewer Assessment District 1980-1 .
The reduction in the amount of principal prepaid shall be com-
pensated for by a transfer from the special reserve fund to the
redemption fund for the bonds of a like amount.
5. In order to prevent the reserve fund from exceed-
ing the reserve limitations set by federal statute and regulation,
the City Treasurer is hereby authorized and directed to make transfers
of accrued interest from the reserve fund to the bond redemption fund
from time to time, and to establish pro rata credits against annual
installments of assessment principal and interest in a like amount
in the year following the year of transfer.
6. When the amount in the special reserve fund equals
or exceeds the amount required to retire the remaining unmatured
bonds (whether by advance retirement or otherwise) , the amount of
the special reserve fund shall be transferred to the redemption fund
for the bonds, and the remaining installments of principal and interest
not yet due from assessed property owners shall be cancelled without
payment.
I HEREBY CERTIFY that the foregoing resolution was duly
and regularly adopted by the City Council of the City of Redding,
Shasta County, California , at a regular meeting thereof, held on
July 21, 1980, by the following vote, to wit :
AYES : Councilmembers Demsher, Fulton, Gard, Kirkpatrick, and Pugh
NOES : Councilmembers None
ABSENT: Councilmembers None
MILDRED L. BRAYTON, City Clerk, City
of Redding, Shasta County, California
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