1982-394RESOLUTION NO. 82R -394
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, ORDERING, CALLING, PROVIDING
FOR AND GIVING NOTICE OF A SPECIAL MUNICIPAL ELEC-
TION TO BE HELD IN SAID CITY ON NOVEMBER 2, 1982
FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED
VOTERS OF SAID CITY: PROPOSITIONS TO ELIMINATE THE
PRESENT INTEREST RATE LIMIT OF 8% ON CERTAIN ELEC-
TRIC AND WATER REVENUE BONDS HERETOFORE AUTHORIZED
TO BE ISSUED BY THE CITY AND TO AUTHORIZE THE CITY
COUNCIL TO ESTABLISH THE MAXIMUM INTEREST RATE ON
SUCH BONDS; AND A PROPOSITION AMENDING THE CHARTER
OF THE CITY OF ANAHEIM TO PROVIDE FOR THE ISSUANCE
OF WATER AND ELECTRIC REVENUE BOND ANTICIPATION
NOTES AND WATER AND ELECTRIC REVENUE ANTICIPATION
NOTES.
WHEREAS, the City Council of the City of Anaheim, pur-
suant to Section 1210 of the Charter of the City and Resolution
No. 74R -615 of the City Council, on March 4, 1975 submitted to
the qualified voters of the City a proposition for the issuance
of electric revenue bonds in the principal amount of
$150,000,000 at an interest rate not to exceed 8 %, and said
proposition was approved by the qualified voters of the City,
and the City has subsequently issued $120,500,000 principal
amount of such previously approved electric revenue bonds at an
interest rate not exceeding 8 %; and
WHEREAS, the City Council of the City of Anaheim, pur-
suant to Section 1210 of the Charter of the City and Resolution
No. 78R -533 of the City Council, on November 7, 1978 submitted
to the qualified voters of the City a proposition for the
issuance of water revenue bonds in the principal amount of
$14,000,000 at an interest rate not to exceed 8 %, and said pro-
position was approved by the qualified voters of the City, and
the City has subsequently issued $7,350,000 principal amount of
such previously approved water revenue bonds at an interest
rate not exceeding 8 %; and
WHEREAS, the remaining unissued balances of said elec-
tric revenue bonds and water revenue bonds are severely re-
stricted by the application of said maximum interest rate, and
the City Council of the City of Anaheim is authorized pursuant
to Section 1210 and 1302 of the Charter of the City of Anaheim
and by statute to submit a proposition to the qualified voters
of the City to amend Resolution No. 74R -615 and Resolution No.
78R -533 to eliminate said maximum rate of interest and provide
for the establishment of a maximum rate of interest from time
to time by resolution of the City Council; and
WHEREAS, the City Council of the City of Anaheim pur-
suant to Article XI of the Constitution and Chapter 2, Division
2, Title 4 of the Government Code of the State of California,
desires to and is authorized to submit to the qualified voters
of said City propositions to amend the Charter of the City;
NOW, THEREFORE, the City Council of the City of
Anaheim, California does hereby resolve, declare, determine and
order as follows:
SECTION 1. That it is hereby ordered that the
hereinafter specified proposition with respect to amendment of
Resolution No. 74R -615 of the City Council concerning the max-
imum interest rate to be paid on certain electric revenue bonds
be submitted to the voters at a special municipal election to
be held in the City of Anaheim on November 2, 1982, and that if
such proposition shall receive the assent of the majority of
the voters voting on the proposition, Resolution No. 74R -615
shall be amended as provided in such proposition.
SECTION 2. That the proposition to be submitted to
the voters pursuant to Section 1 hereof shall be as follows:
In order to provide a more economical
market for the remaining electric rev-
enue bonds authorized by a majority of
the voters in 1975 to provide more eco-
nomical electric service, shall City YES
Council Resolution No. 74R -615 be
amended to eliminate from such Reso-
lution the maximum rate of interest
(eight percent) which may be paid on
such bonds and to provide instead in No
such Resolution that the City Council
shall, at or prior to the time of sale
of any such bonds, establish by reso-
lution a maximum rate of interest which
may be paid on the bonds then being
sold?
SECTION 3. That it is hereby ordered that the
hereinafter specified proposition with respect to amendment of
Resolution No. 78R -533 of the City Council concerning the max-
imum interest rate to be paid on certain water revenue bonds be
submitted to the voters at a special municipal election to be
held in the City of Anaheim on November 2, 1982 and that if
such proposition shall receive the assent of the majority of
the voters voting on the proposition, Resolution No. 78R -533
shall be amended as provided in such proposition.
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SECTION 4. That the proposition to be submitted to
the voters pursuant to Section 3 hereof shall be as follows:
In order to provide a more eco-
nomical market for the remaining
water revenue bonds authorized by
a majority of the voters in 1978,
shall City Council Resolution No.
78R -533 be amended to eliminate YES
from such Resolution the maximum
rate of interest (eight percent)
which may be paid on such bonds
and to provide instead in such NO
Resolution that the City Council
shall, at or prior to the time of
sale of any such bonds, establish
by resolution a maximum rate of
interest which may be paid on the
bonds then being sold?
SECTION 5. The City Council of the City of
Anaheim also desires to amend and to submit to the voters of
said City a proposition to amend Section 1210 of the City
Charter of the City of Anaheim to provide for greater
flexibility in financing for the public utilities of said
City. Such amendment would provide for the sale and issuance
by the City in certain circumstances of revenue bond
anticipation notes and revenue anticipation notes. Such
amendment is as follows (additions are underlined):
SECTION 1210. REVENUE BONDS
Bonds which are payable only out of such revenues
as may be specified in such bonds may be issued when
the City Council by ordinance shall have established a
procedure for the issuance of such bonds. Such bonds,
payable only out of revenues, shall not constitute an
indebtedness or general obligation of the City. No
such bonds payable out of revenues shall be issued
without the assent of a majority of the voters voting
upon the proposition for issuing the same at an elec-
tion at which such proposition shall have been duly
submitted to the qualified electors of the City.
It shall be competent for the City to make con-
tracts and covenants for the benefit of the holders of
any such bonds payable only from revenues and which
shall not constitute a general obligation of the City
for the establishment of a fund or funds, for the
maintaining of adequate rates or charges, for restric-
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tions upon further indebtedness payable out of the
same fund or revenues, for restrictions upon transfer
out of such fund, and other appropriate covenants.
Money placed in any such special fund for the payment
of principal and /or interest on any issue of such
bonds or to assure the application thereof to a spe-
cific purpose shall not be expended for any other pur-
pose whatever except for the purpose for which such
special fund was established and shall be deemed
segregated from all other funds of the City and re-
served exclusively for the purpose for which such spe-
cial fund was established until the purpose of its es-
tablishment shall have been fully accomplished.
Notwithstanding the foregoing, the City may sell
and issue at any time and from time to time revenue
bond anticipation notes (including renewal revenue
bond anticipation notes) in anticipation of the
revenue bonds authorized by the voters on June 2,
1981; provided that the aggregate principal amount of
such revenue bond anticipation notes and revenue bonds
outstanding in accordance with their terms at any one
time shall not exceed $92 million. Such revenue bond
anticipation notes may be sold, issued and secured in
such manner and subject to such terms and conditions
as the City Council may prescribe by ordinance; pro-
vided that such revenue bond anticipation notes shall
not constitute an indebtedness or general obligation
of the City of Anaheim and are not to be secured by
the taxing power of said City.
Notwithstanding the foregoing, the City may also
sell and issue at any time and from time to time reve-
nue bond anticipation notes (including renewal revenue
bond anticipation notes in anticipation of any elec
tric or water revenue bonds heretofore or hereafter
authorized by the voters; provided that i the aggre
gate principal amount of such electric revenue bond
anticipation notes and the electric revenue bonds in
anticipation of which such electric revenue bond anti
cipation notes were issued outstanding in accordance
with their terms at any one time shall not exceed the
p rincipal amount of such electric revenue bonds
authorized by the voters and (ii) the aggregate
principal amount of such water revenue bond antici
pation notes and the water revenue bonds in antici
pation of which such water revenue bond anticipation
notes were issued outstanding in accordance with their
terms at any one time s all not exceed the principal
amount of such water revenue bonds authorized by the
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voters. Such revenue bond anticipation notes ma
be sold, issued and secured in such manner and
subject to such terms and conditions as the City
Council may prescribe Ty ordinance; provided tom
such revenue bond anticipation notes shall not
constitute an indebtedness or general obligation of
the City of Anaheim and are not to be secured by
the taxing power of said City.
Notwithstanding the foregoing, the City may
also sell and issue at any time and from time to
time revenue anticipation notes (including renewal
revenue anticipation notes in anticipation of t e
receipt of revenues of the City's water and elec
tric utilities; provided that the aggregate princi
pal amount of such revenue anticipation notes out
standing in accordance with their terms at any one
time shall not exceed, for each of such utilities,
an amount equal to 25% of the gross revenue earned
by the respective utility during the immediately
preceding fiscal year as set forth in the audited
financial statements of such utility for such
ear. Such revenue anticipation notes may be
sold, issued, and secured in such manner and sub
ject to such terms and conditions as the City
Council may prescribe by ordinance; provided that
such revenue anticipation notes shall not con
stitute an indebtedness or general obligation of
the City of Anaheim and are not to be secured by
the taxing power of said City.
SECTION 6. That it is hereby ordered that at the spe-
cial municipal election referred to in Section 1 hereof the
amendment to the Charter discussed in Section 5 shall be sub-
mitted to the voters in the form of the following proposition:
In order to permit the City the
flexibility to finance its water
and electric systems at lower in-
terest costs, shall the Charter of
the City of Anaheim be amended to
permit the issuance by the City
(without additional authorization
by the voters) upon such terms and
conditions as the City Council
shall determine of (i) electric and
water revenue bond anticipation
notes in anticipation of revenue
bonds authorized by the voters,
(ii) electric revenue anticipation
notes in aggregate principal amount
outstanding not to exceed 25% of
the gross revenues of the City's
electric utility for the im-
mediately preceding fiscal year and
(iii) water revenue anticipation
notes in aggregate principal amount
outstanding not to exceed 25% of
the gross revenues of the City's
water utility for the immediately
preceding fiscal year?
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YES
M�ri7
SECTION 7. That if the proposition submitted to the
voters pursuant to Section 6 hereof receives the assent of a
majority of the voters voting on the proposition, Section 1210
shall be amended as discussed in Section 5 hereof.
SECTION 8. That the special election hereby called
for the date hereinbefore specified is hereby ordered con-
solidated with the statewide general election to be held on
said date, and within the City of Anaheim the precincts, pol-
ling places and officers of election for said special election
shall be the same as those provided for said statewide general
election. The manner of holding said special election, in-
cluding the canvass of the returns thereof, shall be the manner
prescribed by or pursuant to law for said statewide general
election, and the manner of voting upon the proposition here -
inabove set forth shall be the manner prescribed by or pursuant
to law for voting upon measures at said statewide general elec-
tion. In all other particulars, the election hereby called
shall be held and the votes canvassed pursuant to law for gen-
eral municipal elections held in the City of Anaheim.
SECTION 9. That notice of the time and place of hold-
ing said election is hereby given and the City Clerk is hereby
authorized and directed to give such further or additional
notice of said election in time, form and manner as required by
law.
SECTION 10. That the City Clerk shall certify to the
passage and adoption of this Resolution; shall enter the same
in the book of original Resolutions of said City; and shall
make a minute of the passage and adoption thereof in the
records of the proceedings of the City Council of said City, in
the minutes of the meeting at which the same is passed and
adopted.
SECTION 11. That this Resolution shall take effect
immediately.
THE FOREGOING RESOLUTION is approved and adopted by
the City Council of the City of Anaheim this 27th day
of July , 1982.
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MAYOR OF THE CJITY OF
ANAHEIM
ATTEST LINDA D. ROBERTS, CITY CLERK
ASSISTANT CITY CLERK OF THE CITY OF
ANAHEIM
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 82R -394 was introduced and adopted at a regular,
meeting provided by law, of the City Council of the City of Anaheim held on
the 27th day of July, 1982, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Kaywood, Pickler, Bay, Overholt and Roth
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said
Resolution No. 82R -394 on the 27th day of July, 1982.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 27th day of July, 1982.
LINDA D. ROBERTS, CITY CLERK
BY
ASSISTANT CITY CLERK
(SEAL)
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 82R -394 duly passed and
adopted by the Anaheim City Council on July 27, 1982.
LINDA D. ROBERTS, CITY CLERK
BY�
ASSISTANT CITY CLERK