HomeMy WebLinkAboutReso 82-190 - Establishing Bond Reserve Funds upper Churn Creek Sewer Assessment District No. 1980-7RESOLUTION NO. $.--/2
RESOLUTION ESTABLISHING BOND RESERVE FUND
UPPER CHURN CREEK SEWER ASSESSMENT.DISTRICT NO. 1980-7
The City Council of the City of Redding resolves:
1. There is hereby created a special fund to be
designated Special Reserve Fund, Upper Churn Creek Sewer
Assessment District No. 1980-7, City of Redding, Shasta County,
California.
2. Out of the proceeds of the sale of improvement
bonds to represent unpaid assessments in Upper Churn Creek Sewer
Assessment District No. 1980-7,,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 �p
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assessee is required to prepay shall be reduced by an a=j �aGI UC j�� p
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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 Upper Churn Creek Sewer
Assessment District No. 1980-7. 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 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 1st day of November, 1982.
AYES: Councilmembers Demsher, Kirkpatrick, Pugh, and Gard
NOES: Councilmembers Fulton
ABSENT: Councilmembers None
.-'ETHEL A. NICHOLS, City Clerk, City of
Redding,,\Shasta County, California
By -et Z�;7_
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