HomeMy WebLinkAboutReso. 1981 - 151 - Establishing bond reserve fund - Hartnell Avenue Assessment District No. 1980-3RESOLUTION NO.
RESOLUTION ESTABLISHING BOND RESERVE FUND
HARTNELL AVENUE ASSESSMENT DISTRICT NO. 1980-3
The City Council of the City of Redding resolves:
1. There is hereby created a special reserve fund to be
designated Special Reserve Fund, Hartnell Avenue Assessment District
No. 1980-3, City of Redding, Shasta County, California.
2. Out of the proceeds of the sale of improvement bonds
to represent unpaid assessments in Hartnell Avenue Assessment District
No. 1980-3, 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 the 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 assessment
bears to the total amount of assessments levied in Hartnell Avenue
Assessment District No. 1980-3. The reduction in the amount of
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" principal prepaid shall be compensated 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 exceeding
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 tranferred 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.
0
I HEREBY CERTIFY that the foregoing resolution was duly and
regularly adopted by the Ci Coupcil of the City of Redding, Shasta
County, California, at anHrF� neeting thereof, held on the 9th day
of July, 1981, by the following vote, to wit:
AYES: Councilmembers Demsher, Fulton, Gard, Kirkpatrick and Pugh
NOES: Councilmembers None
ABSENT: Councilmembers None
"AMENDED BY R-81-170"
ETHEL A. RICHTER, City Clerk,
City of Redding, Shasta County,
California
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