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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of August 18, 1998 <br />TO: Honorable Mayor and City Council <br />APPROVAL: Henry T. Garcia, City ManageV:j::Z�-+'T <br />FROM: Anna A. Vega, Finance Director <br />c���� <br />SUBJECT: Resolution Authorizing the Assessment in the Amount of <br />$117,600 for the 1970 Electric Utility General Obligation Bonds <br />DATE: August 12, 1998 <br />BACKGROUND <br />The City of Colton authorized the sale of $1,220,000 of bonds for the acquisition and <br />construction of additions to and improvement of the electric utility system. The Bonds <br />were authorized by qualified votes of the City at a special municipal election on January <br />27, 1970. <br />DISCUSSION/ANALYSIS <br />The bonds were issued pursuant to Article 1, Chapter 4, Division 4, Title 4 (Section <br />43600 et seq.) of the Government Code of the State of California (Act of 1901). The <br />Act requires that the City Council shall levy the tax annually until said bonds are paid or <br />until there is an amount sufficient in the treasury to meet all payments of principal and <br />interest on said bonds as they become due. <br />ALTERNATIVES <br />None. <br />FINANCIAL IMPACT <br />The 1998-99 maturing principal is $100,000 and interest of $17,600. Therefore, the <br />amount of $117,600 is necessary to satisfy the bond debt service payment due. The <br />tax levy and debt service payments are accounted for in Fund 520 for the Electric <br />Utility. <br />ENVIRONMENTAL IMPACT <br />None. <br />RECOMMENDATION <br />Staff recommends that the City Council approve the attached resolution for the 1998-99 <br />general tax levy of $117,600 in the payment of the 1970 Electric Utility Bonds. <br />Item # 14 <br />