1996 AGN JUL 02 I06 - Laserfiche WebLink

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City of Colton AGENDA REPORT FOR COUNCIL MEETING OF JULY 2, 1996 TO: HONORABLE MAYOR AND CITY COUNCIL/`jy� APPROVAL: NABAR ENRIQUE MARTINEZ, CITY MANAGE /// %`/ FROM: ANNA A. VEGA, FINANCE DIRECTO� SUBJECT: RESOLUTION AUTHORIZING THE ASSESSMENT IN THE AMOUNT OF $113,634 FOR THE 1970 ELECTRIC UTILITY GENERAL OBLIGATION BONDS. DATE: JUNE 25, 1996 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 -)nds are paid or until there is an amount sufficient in the treasury to meet all payments of principal and interest on said ,onds as they become due. The City must levy and collect the tax as the bonds become due and before the debt payment on the next general tax levy. The tax is in addition to all other taxes levied for municipal purposes and shall be levied and collected as other City taxes by the County of San Bernardino Assessor's Office for the City of Colton. The attached resolution and information is due to the County Assessor's Office before August 10, 1996 in order to levy the general tax for the principal and interest payment of the 1970 Electric Utility Bonds. FINANCIAL ANALYSIS The 1996-97 maturing principal is $85,000 and interest of $28,350. The resolution approving the 1995-96 general tax levy was $284 less than the required debt service amount for that fiscal year. Therefore, the amount of $113,634 is necessary to satisfy the bond debt service payment due. The tax levy and debt serv�ice payments are accounted for in Fund 20 - Electric Utility. / l \ 1 I �1 /,-� l om Clarke, Electric Utility Director RECOMMENDATION Staff recommends that the City Council approve the attached resolution for the 1996-97 general tax levy of $113,634 in payment of the 1970 electric Utility Bonds. achments ITEM NO. 6