83R-161
0073W
JHHW:SSW:nct
04/19/83
RESOLUTION NO. 83R-161
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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
AUTHORIZING THE BORROWING OF FUNDS FOR FISCAL YEAR
1983-1984 ANd THE ISSUANCE OF 1983 TAX AND REVENUE
ANTICIPATION NOTES THEREFOR
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RESOLVED, by the City Council of the City of Anaheim, California, as
follows:
WHEREAS, pursuant to Sections 53850 et seq. of the Government Code of
the State of California, this City Council (the "Counci111) has found and
determined that borrowing is needed for the requirements of the City of
Anaheim (the "City"), a chartered city and municipal corporation duly
organized and existing undtlr the Constitution of the State of California, to
satisfy obligations payable from the General Fund of the City, and that it is
appropriate that said borroWing be undertaken at this time by the issuance of
temporary notes therefor in anticipation of the receipt of taxes, revenue and
other moneys to be rece i v,d by the Ci ty for the Genera 1 Fund of the Ci ty
during or allocable to Fiscal Year 1983-1984;
....
NOW, THEREFORE, the City Council of the City of Anaheim hereby finds,
determi nes, dec 1 ares and resolves as fo 11 ows:
Section l.~tation on Maximum Account. The principal amount of
notes issued pursuant ~o, when added to the interest payable thereon,
shall not exceed eighty-fille percent (8S'%.) of the estimated amount of the
unco 11 ected taxes, revenue and other moneys of the Ci ty for the General Fund
of the City attributable to Fiscal Year 1983-1984, and available for the
payment of said notes and thie interest thereon (as hereinafter provided).
Section 2. Issudince and Terms of Notes. Solely for the purpose of
anticipating taxes, revenue and other moneys to be received by the City for
the General Fund of the City during or allocable to Fiscal Year 1983-1984, and
not pursuant to any common plan of fi nanci ng, the City hereby determi nes to
and shall borrow said aggregate principal sum equal to the General Fund
maximum anticipated cumulative cash flow deficit (rounded to the nearest
$5000) as defined in Section 1 .103-14(c)(2) of the United States Department of
Treasury Regu 1 a ti ons under Secti on 1 03( c) of the Interna 1 Revenue Code of
1954, as amended, as such regulations are in effect on the date hereof, said
deficit to be based upon the reasonable expectations of the City of estimated
",....."...""
1983-1984 fi sca 1 year revenues and expenditures and shall be determi ned by a
certi fi cate prepared and executed by the Di rector of Fi nance of the City,
which certificate shall be accompanied by the opinion of bond counsel to the
effect that such certificate was prepared in compliance with said Treasury
Regulations. Such borrowing shall be by the issuance of temporary notes under
Secti ons 53850 et seq. of the Government Code of the State of Cali forn i a,
designated IICity of Anaheim 1983 Tax and Revenue Anticipation Notesll (the
"Notesll), to be numbered fnpm 1 consecutively upward in order of issuance, to
be in the denomination of $5,000 or any integral multiple thereof to be dated
July 1. 1983, to mature (wi~hout option of prior redemption) on June 29, 1984,
and to bear interest, payable at maturity and computed on a 30-day
month/360-day year basis, at the rate determined in accordance with the Note
Purchase Agreement dated the date hereof by and between the Ci ty and Merri 11
Lynch White Weld Capital Markets Group. Both the principal of and interest on
the Note s s ha 11 be payab 1 e. on 1 y upon surrender thereof, in 1 awfu 1 money of
the United States of America, at the principal office of Crocker National Bank
in Los Angeles, California. or at the principal office of Manufacturers
Hanover Trust Company in New York, New York.
Section 3. Form! of Notes. The Notes shall be issued in bearer
form. wi thout coupons. and. sha 11 be substanti all y in the form and substance
set forth in Exhi bi t A atta.!ched hereto and by reference incorporated herei n,
the blanks in said form to be filled in with appropriate words and figures.
Section 4. Use of Proceeds. The moneys so borrowed shall be
depos ited in the General F'iJl,d of the City and used and expended by the City
for any purpose for whi chit is ~thori zed to expend funds from the General
Fund of the City.
Section 5. Security. The principal amount of the Notes, together
wi th the interest thereon, shall be payable from taxes, revenue and other
moneys whi ch are recei ved by the City for the General Fund of the City for the
Fiscal Year 1983-1984. As security for the payment of the principal of and
interest on the Notes, the City hereby pledges an amount representing
one-fourth (1/4) of the total principal and interest due on the Notes on
maturity of the first lIunrestricted moneys II , as hereinafter defined, to be
received in September, 1983, December, 1983, March, 1984, and June, 1984 (such
pledged amounts being hereinafter called the IIP1edged Revenuesll). The
pri nci pa 1 of the Notes and the interest thereon shall consti tute a fi rst 1 i en
and charge thereon and shall be paid from the Pledged Revenues. To the extent
not so paid from the Pledged Revenues, the Notes shall be paid from any other
moneys of the City lawfully available therefore. In the event that there are
insufficient unrestricted moneys received by the City to permit the deposit in
the Repayment Fund, as hereinafter defi ned, of the full amount of the P1 edged
Revenues to be deposited in any month on the last business day of such month,
then the amount of any deficiency shall be satisfied and made up from any
other moneys of the City lawfully available for the repayment of the Notes and
interest thereon. The term "unrestricted moneys" shall mean taxes, income,
revenue and other moneys int~nded as receipts for the General Fund of the City
and which are generally avai lable for the payment of current expenses and
other obligations of the City.
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Section 6. Fi,scal Agent. Crocker National Bank is hereby
appoi nted to act as the Fi sca 1 Agent and depository of the City for the
purpose of receiving the payments of principal and interest made by the City
on the Notes at maturity, to hold, allocate, use and apply said payments and
to perform such other dutie~ and powers of the Fiscal Agent as are prescribed
-- in this Resolution.
Section 7. Repa~ment Fund. There is hereby created a special fund
to be held by the City separate and di sti nct from all other City funds and
accounts des i gna ted the "1983 Tax and Revenue Anti c 1 pation Note Repayment
Fund" (the "Repayment Fund") and applied as directed in this Resolution. Any
money placed in the Repayme~t Fund shall be for the benefit of the holders of
the Notes, and unti 1 the Notes and all i nterest.~ereon are paid or unti 1
provision has been made for the payment of the Notes"at maturity with interest
to maturity, the moneys in the Repayment F,und shall be applied solely for the
purposes for which the Repa~ent Fund is created.
Ouri ng the months of September, 1983, December, 1983, March, 1984,
and June, 1984, the Ci ty s~a 11 depos ita 11 P1 edged Revenues., in. the Repayment
Fund. On June 27, 1984, the City shall pay to the FlscalAgeiltthe moneys in
the Repayment Fund necessary to pay the principal and tnteiest on the Notes at
maturity and to the extent said moneys are insufficient therefor an amount of
moneys from the General Fund which will enable payment of the~ful1 principal
and interest on the Notes at maturity. Any moneys remain'ing in the Repayment
Fund after the Notes and the interest thereon have been paid, or provision for
such payment has been made, shall be transferred to the Ci ty for deposi tin
its General Fund.
Section 8. Depo~it and Investment of Fund. All moneys held by the
City in the Repayment Fund, if not invested, shall be held in time or demand
deposits as public funds and shall be secured at all times by bonds or other
obligations which are authorized by law as security for public deposits, of a
market value at least equal to the amount required by law.
Moneys in the Repayment Fund sha11,..io" the greatest extent
possible, be invested by the City Treasurer directly", or through an investment
agreement, 1n investments as permitted by the laws of the State of Califor~la
as now in effect and as hereafter amended. and the proceeds of any such
1 nvestments shall be depos ited in the General Fund of the City month 1y or at
such other intervals as the City Treasurer shall deem appropriate.
Section 9. Execution of Notes. The Mayor of the City is hereby
authorized to execute the Notes by manual or facsimile signature, and the
City Clerk of the City is hereby authorized to countersign the same by manual
signature and to affix the seal of the City thereto either manually or by
facsimile impression thereof, and said officers are hereby authorized to
cuase the blank spaces thereaf to be filled in as may be appropriate.
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Section 10. Covenants and Warranties. It is hereby covenanted and
warranted by the City that all representations and recitals contained in this
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Resolution are true and correct, and that the City and its appropriate
officials have duly taken all proceedings necessary to be taken by them, and
wi 11 take any additional proceedi ngs necessary to be taken by them, for the
prompt co 11 ecti on and enforcement of the taxes, revenues and other moneys
pledged hereunder in accordance with law and for carrying out the provisions
of this Resolution.
Section 11. ~trage Covenant. The City hereby covenants that it
will make no use of the pr ceeds of the Notes which if such use had been made
on the date hereof would have caused the Notes to be "arbitrage bonds" under
Section 103(c) of the Internal Revenue Code of 1954, as amended; and, to that
end, so long as any of the Notes are outstand i ng, the Ci ty, and all offi cers
having custody or control Of the proceeds of the notes, shall comply with all
requirements of said section and of the regulations of the United States
Department of the Treasury thereunder ,-to the extent that such regulations
are, at the time, applicable and in effect, so that the Notes will not be
"arbitrage bondsll.
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Section 12. ~e of Notes. The Notes are hereby ordered to be
sold to Merrill Lynch White Weld Capital Markets Group in accordance with the
provisions of the Note Purchase Agreement this date approved and authorized to
be executed.
Section 13. ~ial Statement. The Director of Finance is hereby
authorized to approve theficial Statement relating to the Notes ~fepared by
Merrill Lynch White Weld Capital Markets Group and to be distributed at the
time of reoffering and sale of th~Notes by Merrill Lynch White Weld Capital
Markets Group. The Director of Finance is also authorized to execute a
statement at the time of d~livery of the Notes to the effect that the Official
Statement does not contain any untrue statement of a material fact or omit to
s ta te a mater i a 1 fact requ iired to be s ta ted there in or nece s sar y in order to
make the statements therein, in light of the circumstances under which they
were made, not misleading.
Section 14. Exe~ution of Closing Documents. That the Mayor, City
Cl erk, Di rector of Fi nance. Treasurer and other offi cers of the Ci ty are
authori zed and di rected to execute such certi fi cates, agreements and other
closing documents as are nec~ssary to consummate the transactions contemplated
by this Resolution.
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The foregoing Resolution was passed and adopted by the City Council of
the City of Anaheim, California, at a meeting thereof duly held on the 26th
day of April, 1983.
AYES:
Counci1members:
Kaywood, Pickler, Overholt, Bay and Roth
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NOES:
ABSENT:
Counci1members:
None
Councilmembers:
None
~4~
Mayor
Attest:
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City 1 erk
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EXHIBIT A
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C~TY OF ANAHEIM, CALIFORNIA
1983 TAX AND REVENUE ANTICIPATION NOTE
.,
No.
$
Date:
July 1, 1983
FOR VALUE RECEIVED, the City of Anaheim (the "City"), State of
California, acknowledges it$e1f indebted to and promises to pay to the bearer
hereof, at the principal corporate trust office of Crocker National Bank in
Los Angeles, California, or at the principal office of Manufacturers Hanover
Trust Company in New York, New York, the principal sum of
DOLLARS ($
)
in lawful money of the Unit~d States of America, on June 29, 1984, together
with interest thereon at the rate of ____1 per annum in like lawful money from
the date hereof until pay.ent in full of said principal sum. Both the
principal of and interest on this ~te shall be payable only upon surrender of
this Note as the same shall fall due; provided, however, no interest shall be
payable for any period after maturity during which the holder hereof fails
properly to present this Note for payment.
It is hereby certified" recited and declared that this Note is one of an
authorized issue of Notes in the aggregate principal amount of
Dollars ($ ), all of like tenor, issued
pursuant to the provisions of Resolution No. _____ of the City Council of the
City duly passed and adopted on April 26, 1983, and pursuant to Article 7.6
(commencing with Section 53$50) of Chapter 4, Part 1, Division 2, Title 5, of
the California Government Code, and that all things, conditions and acts
required to exist, happen and be performed precedent to and in the issuance of
this Note have existed, happened and been performed in regular and due time,
form and manner as requi red by 1 aw, and that thi s Note, together wi th all
other indebtedness and obligations of the City, does not exceed any limit
prescribed by the Constitution or statutes of the State of California.
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The pri nci pa 1 amount of the Notes, together wi th the interest thereon,
shall be payable from taxes, revenue and other moneys which are received by
the City for the Repayment Fund of the City for the Fiscal Year 1983-1984. As
securl ty for the payment of the pri nc i pa 1 of and 1 nterest on the Notes, the
City has pledged an amount representing one-fourth (1/4) of the total
.-~ principal and interest due pn the Notes on maturity of the first unrestricted
moneys to be received in September, 1983, December, 1983, March, 1984, and
June, 1984. The principal of the Notes and the interest thereon shall
constitute a first lien and charge thereon and shall be payable from the
P1 edged Revenues and to the extent not so paid from the P1 edged Revenues, the
Notes shall be paid from any other moneys of the City lawfully available
therefore. The term "unrestri cted moneys II shall mean taxes, income, revenue
and other moneys intended as rece i pts for the General Fund of the Ci ty and
which are generally avai lab1e for the payment of current expenses and other
obligations of the City.
IN WITNESS WHEREOF, the City of Anaheim has caused this Note to be
executed by the Mayor of the Ci ty and counters i gned by the C1 ty C1 erk of the
City, and caused its official seal to be affixed hereto all as of this 1st day
of July, 1983.
CITY OF ANAHEIM
... By
Mayor
(S E A U
Countersigned:
City C1 erk
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