1997 AGN AUG 05 I11 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of August 5, 1997 TO: Honorable Mayor and City Council APPROVAL: Gracie Harmon, Acting City Manager FROM: Anna A. Vega, Finance Director SUBJECT: Resolution Authorizing the Assessment in the Amount of $112,400 for the 1970 Electric Utility General Obligation Bonds DATE: July 17, 1997 BACKGROUND The City of Colton authorized the sale of $1,220,000 of bonds for the acquisition and construction of additions to and improvement of the electric utility system. The Bonds were authorized by qualified votes of the City at a special municipal election on January 27, 1970. DISCUSSION/ANALYSIS The bonds were issued pursuant to Article 1, Chapter 4, Division 4, Title 4 (Section 43600 et seq.) of the Government Code of the State of California (Act of 1901). The Act requires that the City Council shall levy the tax annually until said bonds are paid or until there is an amount sufficient in the treasury to meet all payments of principal and interest on said bonds as they become due. ALTERNATIVES None. FINANCIAL IMPACT The 1997-98 maturing principal is $90,000 and interest of $22,400. Therefore, the amount of $112,400 is necessary to satisfy the bond debt service payment due. The tax levy and debt service payments are accounted for in Fund 520 for the Electric Utility. ENVIRONMENTAL IMPACT None. RECOMMENDATION Staff recommends that the City Council approve the attached resolution for the 1997-98 general tax levy of $112,400 in the payment of the 1970 Electric Utility Bonds. Item No. 11 . .... _.. _.._..... .