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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. -2- 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- -3- 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 -4- 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? -5- 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. Z5� MAYOR OF THE CJITY OF ANAHEIM ATTEST LINDA D. ROBERTS, CITY CLERK ASSISTANT CITY CLERK OF THE CITY OF ANAHEIM -7- 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