1991 JUN 04 SPE MIN - Laserfiche WebLink

Browse Search

101201" i u"aM� 1 W0IN& June 4, 1991 A Special Meeting of the City Council of the City of Colton was held on the above given date in the Council Chambers of City Hall, located at 650 North La Cadena Drive, Colton, California, at 6:45 p. m., Mayor Gonzales presiding. Notice of Special Meeting was given on May 31, 1991, in compliance with Government Code Section 54956. ROLL CALL: Council Members present were Roman*, Cisneros, Rehrer, Lofy, and Mayor Gonzales. Also present were City Manager Sotelo, City Attorney Edwards, and City Clerk Ramos. *Council Member Roman entered the Council Chambers at 6:55 p.m. CITY MANAGER'S REPORTS AND RECOMMENDATIONS: Colton CFD 87-1 City Manager Sotelo reported the City recently settled an eminent domain proceeding wherein the City paid out approximately $350,000. for the acquisition of 12 acres of park land for the West Valley Park. --w Issuance of the proposed second series of bonds will not result in any increase in special taxes as the City is already levying at the authorized maximum annual special tax. Mr. Sotelo continued the second series of bonds would mature in the year 2018, the same maturity date as the original $1,500,000 CFD 87-1 bond issue which was issued in July 1988. After 2018, the special tax could be reduced because debt service payments would no longer be required. Whipple, Kinsell & Co., Inc., the City's financial consultant on the original CFD 87-1 bond issue, has calculated (taking into account the amount of special taxes available for debt service) that the City could, at today's interest rates, sell an additional $1,305,000 in bonds that would generate approximately $1,006,965 in spendable bond proceeds after allowing for a reserve fund, capitalized interest, and costs of issuance. City Manager Sotelo outlined the various ways the bond proceeds could be utilized. According to bond counsel, Best, Best & Krieger, bond proceeds from the sale of a second series of bonds by CFD 87-1 could be used to pay for $100% of park land acquisition for that portion of land that would service the multipurpose community building. Staff has determined that approximately six acres of the twelve acres acquired would be needed for the multipurpose community building. The reason as to why the other six acres could not be acquired with bond proceeds is that park land alone is not an authorized facility for which bond proceeds can be expended. CFD 87-1 is authorized to 01 �u" 4 on INI