HomeMy WebLinkAbout71-192~~~_ i ~ -~
RESOLUTION ~IO. 71-192
RESOLUTION OF THE BOARD OF SUPERVISORS OF
BUTTE COUNTX PROVIAING FOR `~HE BO12F20WING
OF FUNDS FOR TfiE FISCAL YEAR'1971~1972 AND
PHE ISSUANCE ~1ND SALE OF TEMPQRARY NOTES
~EiERE~OR
C'",~~ e~i.,-~ Er~~
~
WHEREAS, the County of Sutte (the "County"),•
State of California, deszres to avail a.tself of the pro~-
visions of Article 7.6 (oommencing with Section 53850),
Chapter 4, Part l, Division 2, Title 5, California Govern~
ment Code, Eor the purpose of borrowing the sum of $1,000,000
by issuance of notes in anticipation of the receipt of taxes
tn be received by the County on or betore December 30, 197I,
during the 1971~1972 fiscal year {commencing July i, 1971
and ending June 30, 1972); and
WHEREAS, Section 53858 0~ said Government Code pro~
vides that notes shall not be issued pursuant to said Article
7.6 in any fiscal year in an amount which, when added to the
interest payable thereon, shall exceed eighty~five percent
(85~) of the estimated amount of the then uncoZlected taxes,
income, revenue, cash receipts, and other moneys of the
County which wil~ be available in said fiscal year for the
paXznent o~ said notes and interest thereon;
NpW, THEREFORE, the Board of Supervisors of Butte
Coun~y hereby finds, determines, declares and resolves as
follows: ! ~
,
7 /-/ 9 ~.
Section 1. The es.timated amount of uncollected
taxes remaining on August 24, 1971, and which will be avail-
able on or before December 30, 1971, in this (~97~-~972)
fiscal year for the payment of said notes and inte~est there-
on is ~he sum of at least $$,600,000.
Section 2. No sums have heretofore been borrowed by
the County in anticipation of the receipt of taxes, income,
revenue, cash receipts, or other moneys for ~his (197I-1972)
fiscal year. ~
Section 3. The County hereby determines to, and
shall borrow the aggregate principal sum of One Million Dollars
($1,000,000) by the issuance of 10 temporar~ notes, to be
numbered 1~0 10, both inclusive, of the denomination of
$100,OQ0 each, to be dated September 15, 1971, to matnre
(without option of prior redemption) on December 30, 197i.
Said notes shall bear interest at the rate of not to exceed
seven percent (7~) per annum (payable at maturitX). The
exact rate or rates of in~erest to be paid on said notes
shall be designated at the time of detezmining the bes~ bid
and making the award af~er calling for sealed ~roposaZs for
the purchase.thereof. Said notes sha11 be sold to the bidder
of~ering to purchase them at the Zowest rate or rates of
interest computed from the date of said notes to the maturity
date thereof, or whose bid represents ~he lowest net interest
cost to the County. Said notes shall be sold for not less
than the face value thereof and shall be delivered to the
purchaser and paid ~or on the date thereof, Both the prin~
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cz~~l o~ and ~ntezest on said notes shall be payable~ only
upon surrender thereof, in iawful money of the United
States of America at the office of the County Treasurer
o€ the County in Oroville, Calzfornia. Said notes shall be
issued without coupons and sha1Z be substantially in the
farm and substance set forth in Exhibit "A" a~tached hereto
and by reference incorporated herein, the blanks in sa~d
~orm to be filled in wzth appropriate words and figures,
SectT ion 4. Said sum of $1,000,000, together with
the interest payable thereon as provided herein, is ~ess
tha~ 85~ of the amount set forth in Section 1 hereof,
Section 5. The moneys so ~orrowed shall be used
and e~pended by the County for any purpose for which zt is
authorized to expend funds, including~ but not limited to~
current expenses, capital expenditures, and the discharge
of any obligation o~ ~ndebtedness.
Sect~ ion 6. It is estimated that from August 24,
1971 to December 30, 1971~ the Coun~y will receive taxes
in ~he total sum of at least $$~;600,000. For the prompt
payment of the principal o£ and interest on said notes, the
County hereby pledges a1Z said taxes as received to the ex-
tent necessary to pay said principal of and interest on said
notes, and said notes shal~ constitute a first lien and charge
upon said taxes so pledged; provided, however, the County may,
~~e~ding pa,yment at ~aturity~ deposit the funds so ~ledged
zn ~nactive or term deposztsr or invest such funds as
permitted by law, and in any such event such depos~ts.and
such funds so inves~ed shall ~ema~n subject to such pledqe~
lien and charge,
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Section 7. It is herebX covenanted and warranted
by the County th~t a~l representations and recitals contained
in thzs resolution are true and correct, and that ~he County~
and its appropriate officials, have duly taken a~l proceed-
ings necessary to be taken by them~ and will take any ad~
ditional proceedings necessary to be taken bx them~ for the
levy, collection and enforcement of the taxes pledgefl here.,
under in accordance with law for carrying out the provisions
of this resolu~ion and any pledge hereunder. ~
5ection 8. The County Treasurer is hereby authorized
and directed to e~c~cute said notes for and on behalf of the
County and the County Clerk is hereby authozzzed and directed
to countersign and seal said notes for and on behalf of the
County, and. said signing, countersigning an8 sealing shall
constitute a valid and sufficient execution of said notes,
Section 9. Said notes shall be sold by ~his Board
of Supervisors at public sale on Tuesda~, September 1"~~ 1971~
at 11:00 A.M, and the County Treasurer is hezeby directed to
cause notice to be given for the sale of said no~es by mail~
ing a notice of sale to interested bidders. Said no~ice
shall be in substantially the fo~lowing fozm, to wit:
4
NoTZC~ o~~ sAZ~
of
$1 000 '000 TEM~OR~.RY N'O'1'~S
FI'SCAL YE,AIt 1971-~1972
of '
'PH~ COiT3d'TY 'O~', ~'iJTTE
State of California
NOT~CE TS HEREBY GIVEN that the Board of Supervisors
(the "Board") of Butte County, State of California, wi1l re~-
ceive bids up to 10:30 A,M. on TuesdayF Sep~ember 1;~~ 1971,
at the of~'ice of the County Treasurerr Court House~ Orovzll.e~
California, for $1,000,000 princa.pal amount of temporary notes
(the "notes") hereinafter described. The notes will be sold
by the Board at 11:00 A,.M, on said date a~ the meeting place
af the Board~ Court Houser ~roville, California, for cesh to
the biddsr or bidders offering the .~owest rate of interest
thereon or whose bid represents the lowest net interest cost
to the County, The notes will be issued in accordance with
the provisions of Sec~.ion 53850 et s~q, of the Gove~nment
Code of the State of California, and wi11 be 10 in number~
numbered 1~0 10~ both inclusive, of the denomination of
$10fl{000 each, in the aggregate principal amount of $1{OOO~OOOr
all dated $eptember 15~ ~971 and a11 maturing on December 30~
1g71 [without option of prior redempti,on~, The notes w~.l].
bear interest at such rate or rates~ not to exceed seven pe~~
cent (7~) per annum, as shall be named by the successful
bi8der therefor. Each bidder may name any nu~ber o~ dx~ferent
rates for the notes, provided that each rate so named shall be
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a multiple o£ 1/100 of 1~ and that no one note shall bear
more than one rate o~ interest. Tnterest on the notes sha11
be paid at the ma~ur~ty ~hereof. Each b~dder sha11 state
separately in his bid the rate or zates of interest that he
desires notes of specified numbers to bear and the prem~um
offered, if any.
Both the principal of and interest on the notes
sha11 be payable in lawful money of the United States o£
America at the office of the County Treasurer of Butte
County in Oroville, California. Payment of the princ~pal
of and ~nterest on the notes will be made from County taxes
remaining uncollected on August 24, 1971, and to be received
on or before December 30, 1971, all of which are pZedged for
the payment of the notes and interes~ thereon.
fihe notes will be awarded and sold to the bidder
or bidders whose bid represents the lowest net interest cost
to the County, such interest to be computed from the date of
the notes ~o December 30, 1971, on the basis of three hundred
sixty~five (365) days per year. IP two or more bidders offer
to purchase the notes at the same Zowest net interest cost,
the Board sha11 determine which bid shall be accepted.
The right is reserved by the Board to reject any or
aIl bids.
Each bid must be accompanied by a separate certified
check or cashier's check or oash deposit in the sum of $Z,000
payable to the order of the County Treasurer o~ the County of
Butte, Checks or cash deposits will be returned to unsuccess-
ful bidders whose bi8s are rej~cted, and the cheak or cash
6
deposit of the successful.bidder for the notes will be for-
feited in case he fails to accept and pay for the notes
before noon on their date if his bid is accepted and the
notes are duly tendered for delivery on their date.
Pa~rment of the purchase price of the notes shall
be made on the date of delivery of and payment for the notes
in bank funds immediately available to the County in ~roville,
California.
The opinion of Messrs. Orrick, Herrington, Rowley
& Sutcliffe, 405 Montgomery Street, 6an Francisco, California,
approving the va~xd~ty of the notes will bs furnished to the
successful bidder without cha~ge.
DATED: August 24, 1971.
County Treasurer of Butte County
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EXHIBIT A
COUNTY OF BUTTE
TEMPORARY NOTE
FISCAL YEAR 1971-1972
No.
$100,000 September 15, 1971
FOR VALUE RECEIVED, the County of Butte (the "County"),
State of California, aoknowledges itself indebted to and
promises to pay to the bea~rer hereot, at the office of the
Coun~y Treasurer of Butte County, Court House, Oroville, Cali-
fornia, the principal sum of ONE HUNDREp THOUSAND DOLLARS
($100,000) in lawful money of the t)nited States of America,
on December.30, 1971, together with interest thereon at the
rate of $ per annum in like lawful mdney from the date
hereof until payment in full of said principal sum. Bpth
the principal of and interest on this note sha11 be payabZe
only upon. surrender of this note as the same shali fa11 due;
provided., however, no interest shail be payable for any
~ezioa after maturit~ during which the holder hereof fails
to propezly present this note for payment.
~t zs hereby certified, recited and dec~ared that
this note is one of an authorized issue of notes in the aggre~
gate principal amount of One Million Dollars ($1,Ob0,000) a1.1
of l.ike tenor, made, executed and given pursuant to and by
authority of a resolution of the Board of Supervisors of the
County dul~ ~assed and adopted an August 24, 1971, under and
by authority of Article 7.6 (commenc9.ng with Section 53850) of
Chapter 4, Part 1, Division 2, Title 5, California Government
1
Cofle, and that all acts, conditions and things required to
exist, happen and be pertormed~precedent to and in the issuance
o~ this note have exis~efl, happened and been performed in
regular and due time, £orm and manner as required by law, and
that this note, together with all other indebtedness and ob-
ligations of the County, does not exceed any limit prescribed
by the Constitution or the Statutes o~ the State af California.
For payment of the principal of and interest on this
note and all notes of such authorized issue, ~he County hereby
pledges all taxes o£ ~he County remaining uncollected on
August 24, 1971, and thereafter collected by the County on
or before December 30, 1971, during the fzscal year 1971-1972
and this note and all notes of said authorized issue shaZl
constitute a first Zien and charge thereon; provided, however,
the County may, pending payment at maturity, deposzt the funds
pledged hereby in inactive or term deposits, or invest such
funds as permitted by law, and, in any such event, such
deposits and such £unds so invested shall remain subject to
such pledge, lien and charge.
~N WITNESS WHEREO~, the County of Butte has caused
this note to be executed by the County Treasurer of the County
and counte~signed by the County C1erk of the County, and
caused zts official seal to be affixed hereto this 15th day
of 5eptember, 1971,
COUNTY OF BUTTE
By
County Treasurer
ISeal]
Countersigned:
County Clerk
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PASSED AND AD4PT~~ by the Butte County Board of Super-
visors this 24th day of August, 1971, by the following vote:
AYES: Supervisors Gilman, Maxon, McKillop and Chairman Reynolds
NOE3: None
A$SENT: Supervisor Madigan
NOT ~10TING: None
- ~ ~~z _,~"t-~" ~
J~RE E. , YNOLDS, C ~.rman o~ t~ie
Butte C~nty Board of Supervisors
ATTEST:
CLARK A. NELSON, County Clerk and
ex-officio C1erk of the Board
By ~;-- ~ ~~~-~. -------
STATE OF CAL~FORAIIA ~
) ss.
COCJNTY OF $UTTE }
T~ CLARK A. NELSON ~ Count~r CI.erk~ and
ex~officio Clerk of ~he Board o~ Supervisors o£ Butte CountX~
State of Cala.Pornia, do hereby certify that the above copX
of Resolution No. 71-I92 is a ful1~ true and correct copy
of Resoiution No. 71-192 now on file in my office~ and that
said Resolution No.71-192 was adopted on the 24th da~~o~
August, i471~ and has not been amended o~ repealedr and is
now in full forc~ and effect.
TN WTTNESS WHEREOF, T have hereunto set my hand
and affixed the seal of said County this 24th dax of Augustf
1971.
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