HomeMy WebLinkAboutReso. 78-082 - Approving Official Statement Mac's Road Assessment District No. 1978-2 RESOLUTION NO. 7g - gZ
RESOLUTION APPROVING OFFICIAL STATEMENT
MAC' S ROAD ASSESSMENT DISTRICT NO. 1978-2
•
The. City Council of the City of Redding resolves: .
1. An Official Statement containing material information con-
cerning the proposed bond issue , the proposed improvement, the assessment
district and financial information about the City has been prepared for •
the City. This Council approves the Official Statement.
2. The Council set 2 : 00 P. M. on the 19th day of June , 1978, in
the office of the City Clerk as the time and place for the receipt of
bids for the purchase of improvement bonds in Mac' s Road Assessment
District No. 1978-2 . A Notice Inviting Bids for Bond Purchase has been
prepared for the City. This Council approved the Notice and directed the
City Clerk to publish the Notice once in a newspaper of general circulation
within the City.
3. STURGIS , NESS & BRUNSELL, Special Bond Counsel for the City,
was• authorized to distribute the Notice and the Official Statement to
secure competitive bidding.
4. The Notice and the Official Statement are attached to this
resolution and made a part of it.
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 19th day of June, •
1978 , by the following vote, to wit:
AYES: Councilmembers Fulton, Gard, Kirkpatrick, and Demsher
NOES : Councilmembers None •
ABSENT: Councilmembers Pugh
fop
El L MILDRED L. BRAYTON, City Clerk, 0
• City of Redding, Shasta County , California
:),
MAC' S ROAD ASSESSMENT DISTRICT NO. 1978-2,
City of Redding, Shasta County, California
NOT TO EXCEED $79 , 505. 02 PRINCIPAL AMOUNT
LIMITED OBLIGATION BONDS
ISSUED PURSUANT TO
THE IMPROVEMENT BOND ACT OF 1915
OF THE STATE OF CALIFORNIA
BONDS DATED AND DRAWING INTEREST FROM AUGUST 2, 1978
INTEREST PAYABLE JANUARY 2 AND JULY 2
PRINCIPAL PAYABLE JULY 2 IN YEAR OF MATURITY
DENOMINATIONS $1, 000 (EXCEPT BOND NO. 1)
REGISTRABLE AS TO PRINCIPAL AND INTEREST
CALLABLE ON ANY INTEREST PAYMENT DATE AT 105% OF PAR •
PAYING AGENT: BANK OF AMERICA, NATIONAL TRUST AND SAVINGS
ASSOCIATION
INTEREST NON-TAXABLE IN THE OPINION OF COUNSEL
NO RATING SOUGHT
MATURITY SCHEDULE
Year Amount Year Amount
July 2, 1979 $1, 505. 02 July 2, 1987 . $ 6, 000. 00
July 2, 1980 2, 000. 00 July 2 , 1988 6 , 000 . 00
July 2, 1981 3, 000. 00 July 2 , 1989 7 , 000. 00
. July 2, 1982 3, 000. 00 July 2 , 1990 7, 000. 00
July 2, 1983 3, 000. 00 July 2 , 1991 8 , 000 . 00
July 2, 1984 5, 000. 00 July 2 , 1992 9 , 000. 00
July 2, 1985 5, 000. 00 July 2 , 1993 9 , 000. 00
July 2, 1986 5, 000. 00 TOTAL $79 , 505 . 02
BIDS TO BE RECEIVED IN THE OFFICE OF THE CITY CLERK,
CITY OF REDDING, 760 PARKVIEW AVENUE,
REDDING, CALIFORNIA, BEFORE 2 : 00 P.M. ON
MONDAY, JUNE 19 , 1978
LAW OFFICES OF
STURGIS. NESS 8 BRUNSELL
A PROFESSIONAL CORPORATION
EUGENE K.STURGIS(1892-I976) SUITE 1150.WATERCATE TOWER
Env-IN N.NESS EMERYVILLE.CALIFORNIA 94608
ROEERT BRUNSELL TELEPHONE (415) 652-7588
SAMUEL A.SPERRY
June 9 , 1978
•
Re : Not to Exceed $79 , 505. 02 Par. Value Bonds ,
Mac ' s Road Assessment District No. 1978-2 ,
City of Redding, Shasta County, California
The City of Redding, California, will receive bids on Monday,
the 19th day of June, 1978 , at 2 : 00 P.M. in the office of the
City Clerk; 760 Parkview Avenue, Redding, California, for the
purchase of street improvement bonds to be issued under the
Improvement Bond Act of 1915 following special assessment
proceedings under the Municipal Improvement Act of 1913.
Enclosed is the Notice Inviting Bids for Bond Purchase, as
well as an Official Statement setting forth material informa-
tion concerning the bonds, the project and the special
assessment district.
Further information concerning the legal proceedings may be
obtained from the undersigned. Further information about the
assessed property or the project itself may be obtained from
Robert D. (Lefty) Hastings, the City' s Public Works staff
member having responsibility for this project (Telephone:
(916) 246-1151) .
Very truly yours ,
STURGIS , NESS & BRUNSELL
a professional corporation
S
SAS:mm
INDEX OF INVITATION TO BID
FOR PURCHASE OF NOT TO EXCEED $79 , 505 . 02
PAR VALUE, IMPROVEMENT BONDS
•
Notice Inviting Bids for Bond Purchase Official Statement
PAGE PAGE
The Bonds (1) The Bonds • (10)
Purpose of Issue Limited Obligation
Authority for Issuance Date, Denominations and
Amount of Issue Maturities (11)
Date of Bonds (2) Advancement of Maturity. . . .
Denominations and Registration
Maturity Schedule Issuer's Remedies Upon
Interest (3) Default
Payment Bondholders' Remedies (12)
Bearer Bonds Debt Service Schedule (13)
Advancement of Maturity The Project (14)
Limited Obligation Improvements Authorized. . . .
Security (4) Estimated Project Costs. . . .
• Additional Security The Assessment Distridt •
Section 8809 Special Location of District
Tax Levy (5) Property Valuations
New Article XIIIA, Cali- Vicinity Map Exhibit A
fornia Constitution Boundary Map Exhibit B
Legal Opinion (6) Table of Assessed Valuation
Tax Exemption and Assessment Roll Exhibit C
No Litigation
Arbitrage
Registration
Rating
Official Statement (7)
The Bidding
Price
Minimum Price
Specification of Rates
Bid Calculation (8)
Form of Bid
Bid Security
Prompt Award
Bond Printing (9)
Delivery '
411
NOTICE INVITING BIDS FOR BOND PURCHASE
MAC ' S ROAD ASSESSMENT DISTRICT NO. 1978-2 ,
CITY OF REDDING, SHASTA COUNTY, CALIFORNIA
Notice is hereby given that the City Clerk of the City of
Redding will receive sealed bids for the purchase of bonds
to be issued by the City of Redding for Mac ' s Road Assess-
ment District No. 1978-2 . Bids must be submitted not later
than 2 : 00 o ' clock P.M. on Monday, June 19 , 1978 , in the office
of the City Clerk, City of Redding, 760 Parkview Avenue,
Redding, California. The bids will be publicly opened,
examined and declared then and there, and will be referred
to the City' Council for consideration at its meeting on
the same day .
THE BONDS
1. PURPOSE OF ISSUE. The bonds are being issued for the
purpose of financing the construction and installation of
water distribution facilities and appurtenances in and along
Mac ' s Road and vicinity, including acquisition of necessary
easements or rights-of-way.
2 . AUTHORITY OF ISSUANCE . These bonds are authorized to
be issued under the provisions of the Improvement Bond
Act of 1915 of the State of California, after special assess-
ment proceedings taken by the City Council under the pro-
visions of the Municipal Improvement Act of 1913 of the
State of California. The proceedings were initiated by
Resolution of Intention No. 78-37 adopted by the City
Council on March 20, 1978 :
3. . AMOUNT OF ISSUE. The total amount of bonds proposed to
be issued for this assessment district is not to exceed •
$79, 505. 02. This is subject to revision on the basis of the
City Council ' s action in confirming the assessment and on the
basis of cash payments which may be made following confirmation
and levy of the assessment, anticipated to take place at said .
June 19 Council meeting.
• -1- (1)
• 411
4 . DATE OF BONDS . The bonds will be dated August 2 , 1978.
5. DENOMINATIONS AND MATURITY SCHEDULE . The bonds will mature
over a period of fifteen years . The following maturity schedule
is a sample maturity schedule based on the estimated cost of the
project and will be used for purposes of computing the lowest bid:
•
YEAR OF BOND DENOM- YEARLY
MATURITY NUMBERS INATION AMOUNT
1979 1 $1 , 505. 02 $1 , 505. 02
1980 2- 3 • 1000 2 , 000. 00
1981 4- 6 1000 3 , 000. 00
1982 7- 9 • 1000 3 , 000 . 00
1983 10- 12 1000 3, 000. 00 •
1984 13- 17 1000 5, 000. 00
1985 18- 22 1000 5, 000. 00
1986 23- 27 1000 5, 000. 00
1987 28- 33 1000 6 , 000. 00
1988 34- 39 1000 6 , 000. 00
1989 40- 46 1000 7 , 000. 00
1990 47- 53 1000 7, 000. 00
1991 54- 61 1000 8 , 000. 00
1992 62- 70 1000 9, 000. 00
1993 71- 79 1000 9, 000. 00
TOTAL: $79 , 505. 02
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6 . INTEREST. Each bond will bear interest from its date
at a rate not to exceed eight percent (8%) per annum. Each
bond shall have coupons attached representing semiannual
interest. The first coupon on each bond will represent
interest from the date_ of the bond until January 2 , 1979 ,
and each subsequent coupon will represent interest to the
next July 2 or January 2 , as the case may be, until the
maturity date of the bonds .
7. PAYMENT. Bond principal and interest on this issue are
payable in lawful money of the United States at the Bank of
America, National Trust and Savings Association, paying
agent of the City of Redding, at San Francisco, California.
8 . BEARER 'BONDS . The bonds will be issued as negotiable
instruments payable to bearer . Unless thereafter regis-
tered, title to each bond may be passed by physical. delivery.
9 . ADVANCEMENT OF MATURITY . The issuer at its option may •
advance the maturity of any bond to the next interest pay-
ment date following the publication of a sixty-day notice
of call . Upon call, the bondholder shall receive interest
to the date of call , the principal of the bond and .a re-
demption premium in the amount of five per cent of the prin-
cipal.
10. LIMITED OBLIGATION . Bonds issued under the provisions
of the Improvement Bond Act of 1915 of the State of Calif-
ornia are limited obligation bonds . These bonds are not
a general obligation of the issuer and the full faith and
credit of the issuer is not pledged to the payment of
either principal or interest of the bonds. The obligation
of the issuer to employ its general taxing power is strictly
limited by the specific provisions of the Improvement Bond
Act of 1915 as generally described in the following para-
graphs .
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411
11 . SECURITY . Installments of the principal and interest
of special assessments levied upon the land within the
assessment district are collected with real property taxes as
• a separately stated item on the tax rolls . These install-
ments are deposited in a bond redemption fund, which consti-
tutes' a trust fund, from which maturing bonds and interest
coupons are paid.
The unpaid special assessment constitutes a lien on each
•
parcel of assessed land . The lien is subordinate to all unpaid
fixed special assessments previously levied, has priority
over any fixed special assessments which may subsequently .
be levied , and has parity with the lien for taxes. There
' are no unpaid fixed special assessments against any land
in Mac ' s Road Assessment District No. 1978-2.;
If any property owner fails to pay the installment of special
assessments when due, the property is sold at tax sale in the same
manner as a sale for delinquency on the payment of taxes. (As a
cumulative remedy the issuer may obtain a judicial foreclosure of
the property.
12 . ADDITIONAL SECURITY. The issuer is required by law to
become the purchaser of the property at . the sale for delin-
quency, and is required to transfer into the redemption fund
the amount of the delinquent installment. The issuer is re-
quired similarly to make transfers of delinquent installments
.to the redemption fund in each subsequent year until the pro-
perty is redeemed or resold. .
For the purpose of making the transfers required by the Im-
provement Bond Act of 1915 , the issuer may utilize any
available funds not immediately needed.
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13. SECTION 8809 SPECIAL TAX LEVY. Section 8809 of said
1915 Act presently provides that, where sufficient funds are
• not otherwise available to the City of Redding from which to
make the required transfers , the City Council shall, at the
time of fixing the annual tax rate and levying the taxes to be
collected for general city purposes, levy a special tax upon
' the taxable property in the city for the purpose of paying for
the property purchased or to be purchased at tax sales held.
under the provisions of said 1915 Act, and also for the purpose
of paying installments of the assessment or of the interest
thereon, which the city is required to pay under the provisions
of Section 8806, but not to exceed for each local improvement
• ten cents ($0. 10) on each one hundred dollars ($100) of assess-
able property in any one year. Such special tax shall be in
addition to all other taxes levied for city purposes, and shall
be computed, entered and collected in the same manner, and by
the same persons and at the same time and with the same penalties
and interest as are other taxes of the city.
Howeyer, see the following paragraph 14 respecting the doubt
cast. on Section 8809 and the availability of the special tax
levy, as applied to this bond issue , by the recent passage of
Proposition 13.
14. NEW ARTICLE XIIIA, CALIFORNIA CONSTITUTION. One June 6 ,
1978, the California electorate passed Proposition 13, thereby
• adding Article XIIIA to the California Constitution. While
Proposition 13 makes no specific mention of Section 8809, it
may be that an attempt by the City of Redding to levy the
special tax authorized by said Section 8809 in respect to this .
bond issue would be challenged as being in conflict with Article
XIIIA.
Accordingly, pending clarification by judicial determination
or otherwise of Article XIIIA, prospective bidders and subse-
quent purchasers are cautioned not to rely upon the special tax
levy as security for payment of bond principal and interest.
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411
15. LEGAL OPINION. The approving legal opinion of Sturgis,
Ness & Brunsell a professional corporation, Suite 1150 , Water-
gate Tower, 1900 Powell Street, Emeryville, California 94608 ,
approving the validity of the bond issue will be furnished
without charge to the successful bidder. This law firm has
been retained by the issuer as bond cousnel on a contingent •
fee payable solely from the proceeds of the bond issue.
•
16. TAX EXEMPTION. In the opinion of bond counsel, interest
•
on the bonds is exempt from all federal income taxes and from
State of California personal income taxes under existing
statutes , regulations , rulings and court decisions.
If, prior to delivery of the bonds, the income received by
private holders from bonds of the same type and character
shall have been declared taxable under any federal income tax
• law, whether by statutory change, by ruling of a federal income
tax authority or official (which ruling is followed by the
Internal Revenue Service) or by decision of any federal court,
the purchaser of the bonds shall have the option, before tender
of the bonds , to cancel the purchase .
17. NO LITIGATION. There is no pending litigation contest-
ing the validity of the bonds or the authority of the
issuer or its officers to conduct the special assessment pro •
-
ceedings precedent to the issuance of the bonds . A signature
and no-litigation certificate will be furnished to the success-
ful bidder at the time of bond delivery.
18. ARBITRAGE . The issuer will furnish to the purchaser, at
the time of bond delivery , a certificate that the bonds are
not arbitrage bonds within the meaning of Section 103 (c) of •
. the Internal Revenue Code .
19. REGISTRATION. Any bond may be registered as to both
principal and interest. Any registered bond may be trans-
ferred, deregistered, or reregistered at the expense of the
bondholder . .
•
20. RATING. The issuer has not sought to obtain a rating
for this issue from any. bond rating agency.
•
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411 .
• 21. OFFICIAL STATEMENT. An Official Statement, containing
material information about the bond issue and the project
has been prepared at the direction of the issuer. The
Official Statement is a part of this Notice Inviting Bids
as much as if set forth herein.
Upon request the issuer will furnish to the purchaser twenty
( 20) copies of the Notice Inviting Bids and the Official
Statement without charge . Additional copies may be obtained
at the expense of the purchaser ..
The issuer will furnish to the purchaser a certificate , dated
as of bond delivery and delivered with the bonds , that the
Notice and the Official Statement (together with later revi-
sions of theth, if any) neither contain any untrue statement of
a material fact •nor omit to state any material fact required
to prevent these documents or any portion of them from being
misleading.
THE BIDDING
22. PRICE . Bidders must specify the price at which they
propose to purchase the issue. Bidders are requested to
specify the price as a percentage of the par value of the
• issue , but bids specifying a dollar price will be accepted .
23. MINIMUM PRICE. Bids must be for not less than ninety-
five per cent (95% ) of the par value of the issue. Any bid
• for less than ninety-five per cent (95%) of the par value
will be rejected.
24 . SPECIFICATION OF RATES . Bidders must specify the
• interest rate which bonds of each maturity date shall
•
bear. All bonds maturing on the same date must bear the same
rate of interest, but different rates of interest may be
bid for bonds maturing on different dates . The difference
between the highest and lowest rates bid may not exceed two
per cent (2%) . The interest payable on any bond on any
interest payment date may be represented by only one coupon.
Each interest rate must be specified as a multiple of 1/40
of one per cent ( . 025%) per annum.
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•
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25. . BID CALCULATION . Each bid will be calculated on the
basis of its net interest cost. Net interest cost is the
• amount determined by adding the amount of bond discount to,
or subtracting the amount of bond premium from, the total
coupon interest payable on all bonds over the life of the
issue, without adjustment for the factor of time of payment
or accrual . In calculating interest, the calendar year
• will be treated as having 360 days and each calendar month,
30 days. •
Bidders are requested, but not required, to state in their
bids the net interest cost or net interest rate, or both.
This statement will be treated as informational only and will
not affect the calculation of bids or award of the bonds .
Award of the bonds , if made , will be made to the bidder offer-
ing to purchase the bonds at the lowest net interest cost to
the issuer .
26. FORM OF BID. All bids must be unconditional and for
not less than all of the bonds in this issue . Each bidder
• must agree to pay accrued interest from the date of the
bonds to the date of delivery. Bids must be enclosed in a
• sealed envelope, addressed to the City Clerk of the City of
Redding, and marked, "Bid for Bonds , Mac ' s Road Assessment
District No . 1978-2. "
27. BID SECURITY. No bid deposit or bid bond is required as a
condition of submission of a bid for this issue.
• 28. RIGHT OF REJECTION . The City Council of the City of •
Redding reserves the right at its discretion to reject any
and all bids and to waive any irregularity or informality
in any bid .
29. PROMPT AWARD. The City Council of the City of Redding
will award the bonds or reject all bids not later than
forty-eicht (48) hours after bids are opened. •
•
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30 . BOND PRINTING. The issuer will pay the cost of print-
ing the bonds .
31 . DELIVERY. Bonds shall be delivered on their date or as
soon thereafter as they are ready for delivery. The purchaser
shall have the right to cancel the purchase if the bonds are
not tendered within sixty (60) days after the bid date . Success-
ful bidder , by making a bid , agrees to pay for and take delivery
of the bonds within forty-eight (48) hours after notification by
City that the bonds are ready for delivery .
The bonds will be delivered at the office of the City Treasurer ,
City of Redding , or at any other place mutually agreed on between
the City Treasurer and the purchaser . Payment for the bonds must
be made in funds immediately available to the issuer . Any expense
in connection with providing immediately available funds , whether
by transfer of Federal Reserve funds or otherwise , shall be paid
by the purchaser .
DATED: June 7 , 1978
MILDRED L. BRAYTON, City Clerk ,
City of Redding , Shasta County,
•
California
•
•
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OFFICIAL STATEMENT
NOT TO EXCEED $79 , 505. 02 PRINCIPAL AMOUNT
1915 ACT IMPROVEMENT BONDS
CITY OF REDDING
MAC' S ROAD ASSESSMENT DISTRICT NO. 1978-2
The City of Redding, California, is issuing local improvement
• bonds under the provisions of the Improvement Bond Act of 1915
of the State of California in an amount not to exceed $79 , 505. 02 .
These bonds, designated Series 1978-2 will finance construction
and installation of water distribution facilities and appurtenances
in and along Mac ' s Road and vicinity, an area just northerly of
the city boundary, together with acquisition of any necessary
easements or rights-of-way. The bonds represent special
assessments levied by the City Council according to special
benefits to land within Mac' s Road Assessment District No. 1978-2 ,
which was created for the project under the Municipal Improvement
Act of 1913.
This official statement presents material information concerning
the bonds , the project and the assessment district. The official
statement is deemed to include the Notice Inviting Bids for Bond
Purchase as fully as if the Notice was set forth here.
THE BONDS
1. LIMITED OBLIGATION. Bonds issued under the Improvement Bond
Act of 1915 are limited obligation bonds . Please note that the
bonds are not a general obligation of the State of California,
the City of Redding, or any other local entity , and the full
faith and credit of the issuer is not pledged to the payment of
. bonds. Installments of the principal and interest on special
assessments within Mac ' s Road Assessment District No. 1978-2 , as
collected, are deposited in a redemption fund maintained by the
issuer as a trust fund. These bonds and the interest on them are
payable solely from this fund.
(10)
411 .
2 . DATE, DENOMINATIONS AND MATURITIES. The bonds are issued
in denominations of $1, 000 , except Bond No. 1. The bond numbers
and amounts maturing in each year are stated in the Notice
Inviting Bids for Bond Purchase. A portion of the bond issue
matures on July 2 of each year in a 15-year period commencing
on July 2 , 1979 . The bonds bear semiannual interest represented
by coupons attached to each bond. Interest Coupon No. 1 repre-
sents interest from the date of the bonds, August 2 , 1978, to
January 2 , 1979, and thereafter interest is payable on July 2
and January 2 until the maturity date of each bond.
3. ADVANCEMENT OF MATURITY. All bonds are callable before their
normal maturity, on any interest payment date , after a 60-day
published notice of call. Upon call, the bondholder is entitled
to accrued interest to the date of call and one hundred five
per cent (105%) of the bond principal.
4 . REGISTRATION. All bonds are registrable as to both principal
and interest and may thereafter be transferred, deregistered and
reregistered at the expense of the bondholder.
5. ISSUER' S REMEDIES UPON DEFAULT. The installments of special
assessments represented by these bonds are collected as a
separately stated item on the property tax bill for each specially
assessed parcel within Mac ' s Road Assessment District No. 1978-2 .
Installments of these special assessments are collected at the
same time and in the same manner as general property taxes against
the specially assessed parcels, they carry the same penalty for
non-payment and their payment is enforced in the same manner as
for general taxes. One-half of each annual installment is
delinquent if not paid on or before December 10 of each fiscal
year; the second installment is delinquent after April 10.
Delinquent installments bear an immediate penalty of six per cent
(6%) and, if not sooner paid, begin to accrue a penalty of one
per cent (1%) per month on July l following the fiscal year of
delinquency. After a five-year redemption period, the delinquent
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property may be sold by the tax collector and a prorata share
of the proceeds deposited in the appropriate special assessment
redemption funds and general funds of the taxing and assessing
agencies.
As a cumulative remedy, the issuer may begin a judicial fore-
. closure immediately after default in any installment of special
assessment. A judicial foreclosure is instituted in the Superior
Court of the state in the county where the property is located
and is conducted in the same manner as a judicial foreclosure on
property delinquent in payments under a mortgage or deed of
trust. After the issuer establishes the right to foreclose to
the court' s satisfaction, the court appoints a commissioner to
conduct an auction sale of the property. Following the sale,
the issuer receives the amount due on account of deliquencies,
plus attorney' s fees and court costs, and the balance , if - any,
is held in trust by the court for the credit of the property
owner.
Like the tax sale, judicial foreclosure affects only delinquent
assessment installments. The purchaser either at the tax sale
or at a judicial foreclosure takes the property subject to
future assessment installments.
6. BONDHOLDERS' REMEDIES. Whenever any property owner is
delinquent in the payment of any installment, the Improvement
Bond Act of 1915 requires the issuer, at the end of the fiscal
year of such delinquency, to transfer into the redemption fund
the amount of the delinquent installment. The issuer must con-
tinue to transfer delinquent amounts to the redemption fund in
,each subsequent year until the property is redeemed or sold.
In making the required transfers, the issuer may use any available
funds not immediately needed.
As indicated in paragraph 13 of the Notice Inviting Bids for Bond
Purchase, Section 8809 of said 1915 Act presently provides that,
where sufficient funds are not available to the City of Redding
from which to make the required transfers, .the City Council must
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levy a special tax city-wide at a rate of up to tencents ($0. 10)
per one hundred dollars ($100) of assessed valuation in order to
. obtain funds for the transfer.
However, as indicated in paragraph 14 of said Notice , in view of
the passage of Proposition 13 on June 6, a legal question now
exists as to whether the City Council could lawfully levy the
special tax levy if and when it became appropriate to do so
• under Section 8809. Accordingly, any prospective purchaser of
bonds of this issue is cautioned not to rely upon the special
tax levy as security for payment of bond principal and interest.
In the absence of other available funds to make up possible
bond redemption fund deficiencies, and assuming that the special
tax levy required by Section 8809 was not authorized, bondholders
might experience a delay in receiving payment of principal or
interest amounts, pending completion of tax sale or judicial
foreclosure proceedings and realization of cash sale proceeds by
the city.
7. DEBT SERVICE SCHEDULE. The following table shows a debt
service schedule based on an interest rate of eight per cent (8%)
per annum.
•
DEBT SERVICE SCHEDULE
DATE OF BONDS : AUGUST 2, 1978
YEAR RATE PRINCIPAL INTEREST TOTAL
1978-79 8 . 000 $1 , 505 . 02 $5 , 830. 37 $7 , 335 . 39
1979-80 8 . 000 2 , 000 . 00 6 , 240. 00 8, 240. 00
1980-81 8 . 000 3 , 000 . 00 6 , 080 . 00 9 , 080 . 00
1981-82 8 . 000 3 , 000 . 00 5 , 840. 00 8 , 840. 00
1982-83 8 . 000 3 , 000 . 00 5 , 600. 00 8 , 600. 00
1983-84 8 . 000 5, 000 . 00 5 , 360 . 00 10 , 360 . 00
1984-85 8 . 000 5, 000 . 00 4 , 960 . 00 9 , 960 . 00
1985-86 8 . 000 5, 000 . 00 4 , 560. 00 9 , 560 . 00
1986-87 8 . 000 6 , 000 . 00 4 , 160. 00 10, 160 . 00
1987-88 8 . 000 6 , 000 . 00 3 , 680. 00 9 , 680 . 00
1988-89 8 . 000 7 , 000 . 00 3 , 200. 00 10 , 200. 00
1989-90 8 . 000 7 , 000 . 00 2 , 640. 00 9 , 640 . 00
1990-91 8. 000 8, 000 . 00 2 , 080 . 00 10 , 080 . 00
1991-92 8 . 000 9 , 000 . 00 1 , 440. 00 10 , 440 . 00
1992-93 8 . 000 9 , 000 . 00 720. 00 9 , 720. 00
TOTALS : $79 , 505 . 02 $62 , 390 . 37 $141 , 895 . 39
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411 .
THE PROJECT
8. IMPROVEMENTS AUTHORIZED. The improvements authorized within
' Mac ' s Road .Assessment District No. 1978-2 are generally described
as follows :
Construction and installation of water distribution
facilities and appurtenances in and along Mac ' s Road
and vicinity, including acquisition of necessary ease-
ments or rights-of-way.
9. ESTIMATED PROJECT COSTS. The following cost schedule was
approved by the City Council as a part of the Engineer' s Report
for the project.
1. Construction (based on low bid)
a. ) Estimated construction $76 , 690 . 00
b. ) Contingency (10%) 7 , 669 . 00
$84 , 359 . 00
2. Less City Contribution (12 , 000. 00)
3. Incidental Expenses 7 , 146 . 02
TOTAL PROPOSED ASSESSMENT $79 , 505 . 02
THE ASSESSMENT DISTRICT
10. LOCATION OF DISTRICT. Mac' s Road Assessment District No.
1978-2 consists of property located just to the north of the
city boundary (see attached Exhibit A) . A diagram showing the
parcels assessed is attached as Exhibit B.
11. PROPERTY VALUATIONS. A table of the proposed assessments
and related 1977-78 assessed valuations is set forth as Exhibit
C. Note that the assessed valuations are subject to downward
revision in conformity with Section 2 of the new Article XIIIA
of the California Constitution, as added by passage of Proposition
13. on June 6 , 1978 .
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EXHIBIT B
TABLE OF ASSESSED VALUATION AND
ASSESSMENT ROLL
MAC' S ROAD ASSESSMENT DISTRICT NO. 1978-2 ,
CITY OF REDDING, SHASTA COUNTY, CALIFORNIA
Assessment Assessed Valuation
& Diagram Assessor' s Amount of (1977-78)
Number Parcel No. Assessment Land Improvements
1 64-38-08 $ 3, 293. 96 $ 1, 370 -0-
2 64-38-31 2, 693. 50 1, 370 $12, 000
3 64-38-32 2, 516. 89 870 -0-
4 64-38-33 . 39. 41 . 70 -0-
5 64-38-34 -0- 120 -0-
6 64-38-06 2, 251. 77 1, 120 -0-
7 64-38-01 2 , 907. 74 1, 620 1, 250
8 64-38-03 2 , 598. 44 1, 250 10 , 500
9 64-38-04 2, 135 . 31 1, 250 8, 750
10 64-38-05 2 , 112 . 12 1, 250 8 , 750
11 64-19-32 2, 881. 29 1, 325 -0-
12 64-19-35 2, 680. 00 4 , 000 25 , 000
13 64-19-33 2, 514 . 98 675 12 , 750
14 64-19-27 2, 150. 58 750 -0-
15 64-19-19 2 , 196. 95 870 5 , 000
16 64-19-20 2 , 057. 85 1, 000 4 , 500
17 64-19-28 2 , 170. 08 1, 000 4 , 250
18 64-19-22 1, 363. 41 1, 250 6 , 250
19 64-19-23 1, 490. 93 750 -0-
20 64-19-29 2 , 756. 09 750 -0-
21 64-19-15 2 , 072 . 84 1, 250 -0-
22 64-19-30 2 , 391. 70 625 -0-
23 64-19-31 2 , 237 . 32 625 -0-
24 64-19-13 2 , 058. 93 1, 250 -0-
25 64-19-12 2 , 058 . 93 1, 250 -0-
26 64-19-11 2, 367. 69 1, 250 -0-
27 64-19-02 3, 448. 34 2 , 000 370
28 64-19-10. 2 , 830. 82 1, 250 -0-
29 . 64-19-03 3, 301. 33 850 -0-
30 64-19-34 4 , 374 . 60 7, 000 16, 000
31 64-19-05 1, 622 . 53 620 -0-
32 64-19-06 3, 038 . 94 1, 750 14 , 250
33 64-19-07 2 , 830. 82 1, 750 5 , 000
34 64-19-08 2, 058. 93 1, 250 -0-
EXHIBIT C