HomeMy WebLinkAboutReso. 1981 - 216 - Establishing bond reserve fund - Western Oaks Estates Unit No. 1 Assessment District No. 1979-4RESOLUTION NO. S/ -
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RESOLUTION ESTABLISHING BOND RESERVE FUND
WESTERN OAKS ESTATES UNIT NO. 1 ASSESSMENT DISTRICT NO.
1979-4
The City Council of the City of Redding resolves:
1. There is hereby created a special fund to be
designated Special Reserve Fund, Western Oaks Estates Unit
No. 1 Assessment District No. 1979-4, City of Redding, Shasta
County, California.
2. Out of the proceeds of the sale of improvement
bonds to represent unpaid assessments in Western Oaks Estates
Unit No. 1 Assessment District No. 1979-4, 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
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the special reserve fund.
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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 originally levied in Western Oaks
Estates Unit No. 1 Assessment District No. 1979-4. The
reduction in the amount of 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 transferred
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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.
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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
the 21st day of September, 1981.
AYES: Councilmembers Demsher, Fulton, Gard, Kirkpatrick, and Pugh
NOES: Councilmembers None
ABSENT: Councilmembers None
ETHEL A. RICHTER, City Clerk,
City of Redding, Shasta County,
California
By
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