Loading...
HomeMy WebLinkAbout99-076KI;SOLU'I'ION AU`T'HORIZING ISSUANCI3 OF A SINGLE `I'LI~I BOND DIZESCHER TRACT ASSBSSMI?N`I' DIS"I'IZIC'I' The Board of Supervisors of the County of Butte resolves: Section 1. RI?C["PALS. On July 8, 1997, the Board of Supervisors of the County of Butte adopted its resolution of intention to order improvements in the Drescher `ITact Assessment District, County of Butte, California, under the provisions of the Municipal Improvement Act of 1913 (the "Act"), as amp ndcd. Proceedings taken under the Act led to the levy of special assessments in the total amount of ~351,SC7.81 against parcels of land within the assessment district. '1"hesc assessments were recorded in the office of the County Recorder of the County of Butte, and thereupon became a lien on each parcel assessed. The period within which parcel owners might pay their assessments in cash has expired. Section 2. ISSUANCI? OF' BONDS. The Board of Supervisors hereby authorizes the issuance of a single term improvement bond under the provisions of the Improvement Bond Act of 1915 to represent unpaid assessments in the amount of ~32C,398.55 (the "Bond"). The Bond shall be designated, "Improvement Bond, County of Butte, Drescher Tract Assessment District, Series No. 1999-1." "T"he Bond shall be dated the date of delivery and shall mature an September 2, 2037. '['hc interest rate on the Bond shall be as set forth in the offer of the USDAJRural Development {formerly Farmers Hamc Administration). Section 2.1. `I'BRM BOND MANDATORY ADVANCI; RI~DEMP`T'ION. The Bond is subject to mandatory advance redemption on September 2 at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date of redemption, without premium, in accordance with the following schedule and in the following amount: Amount to be Amount to be Year Redeemed Year Redeemed 2000 ~ 1,398.55 2019 ~ 8,000.()0 2001 5,000.00 2020 10,000.00 2002 S,ooaoo 2021 ~ 0,000.04 2003 5,000.00 2022 10,000.00 2004 5,000.00 2023 1.0,000.00 2005 5,000.00 2024 10,000.00 2006 5, 000.00 202 5 10, 000.00 2007 5,000.00 2026 10,000.00 2008 5,000.00 2027 10,000.00 2009 5,000.00 2028 10,000.00 2010 5,440.00 2oz9 10,000.00 2011 8,000.00 2030 10,000.00 2012 8,000.00 2031 10,000.00 2013 8,000.00 2032 10,000.00 2014 8,000.00 2033 13,000.00 2415 8,000.00 2034 15,000.00 2016 8,000.00 2035 15,000.00 2017 8,000.0(} 2036 15,000.00 2018 8,000.00 2037 ~ 5,000.00 (mat.) Assessment installments sufficient to make these mandatory advance redemptions shall be collected by the County 'I"reasurer of the County of Butte (the "County Treasurer"), deposited in the Redemption Fund and used by the County "Creasurer for the mandatory advance redemption or payment of the term bond. Section 3. APPOIN'I'MI;NT OP PAYING AGEN'[", REGISTRAR ANI) 7"RANSFER AGF,NT. The Board of Supervisors hereby appoints the County 'Creasurer of the County of Butte as paying agent, registrar and transfer agent for the Bond. Section 4. FO1ZM AND EXECUTION. The Bond shall be issued as a fully registered bond substantially in the form set forth as Exhibit A to this resolution. '1"he Bond shall be signed by the County `t'reasurer and the Chief Administrative Officer and Clerk of the hoard of Supervisors. Both signatures may be reproduced on the Bond by facsimile, but upon its registration ar reregistration said Bond shall be authenticated by the manual signature of the County 'Creasurer. The County 'I"reasurer shall assign to each bond authenticated and registered by it a distinctive letter, or number, or letter and number, and shall maintain a record thereof which shall be available to the County for inspection. 2 Section 5. ES`T'ABLISHMENT OF SPECIAL FUNDS. For administering the proceeds of the sale of the Bond and payment of interest and principal on the Bond, there are hereby established three funds to be known as the improvement fund, the redemption fund and the special reserve fund, respectively, for Drescher Tract Assessment District. Section 5.1. IMPROVF.It'tEN`I' FUND. Proceeds of sale of the Band, together with all amounts paid on the assessments before bond issuance, shall be deposited in the improvement fund to be maintained by the County 'Creasurer. Disbursements from the improvement fund shall be made by the County Treasurer in accordance with the budget of estimated costs and expenses set forth in the engineer's report, as modified by Resolution No. 98-124, heretofore approved by the Board of Supervisors, which report and budget are subject to modification by the Board from time to time as prescribed by the Act. Section 5.2. REDENfP'I"ION FUND. The redemption fund shall be maintained by the County Treasurer. All payment`s of principal and interest installments on the assessments, tagcthcr with penalties, if any, shall be deposited in the redemption fund, which shall be a trust fund for the benefit of the Bond owner. Payment of the Bond at maturity, or at redemption before maturity, and all interest on the Bond shall be made from the redemption fund. Section 5.3. SPEC[AL RESERVE FUND. There shall be deposited into the special reserve fund the amount of X32,639.86 from the proceeds of the sale of the Bond. 'T'hat amount, less any amounts transferred to the redemption fund pursuant to Section 8884 of the Streets and Highways Cade, shall constitute the "Reserve Requirement" for the Bond. The special reserve fund shall be maintained by the County 'T"reasurer in such a manner that at no time will the amount therein exceed the least of the following amounts: (i) ten percent of the sale of the proceeds of the Bond; {ii) maximum annual debt service on the Bond; or (iii) 125% of the average annual debt service on the Bond. A. During the term of the Bond, the amount in the special reserve fund shall be available for transfer into the redemption fund in accordance with Section 8883 of the Streets and Highways Code. `T'he amount so advanced shall be reimbursed to the special reserve fund from the proceeds of redemption or sale of the parcel for which payment of delinquent assessment installments was made from the special reserve fund. B. If any assessment is prepaid before final maturity of the Bond, the amount of principal which the assessee is required to prepay shall be reduced by an amount which is in the same ratio to the original amount of the special reserve fund as the original amount of the prepaid assessment bears to the total amount of unpaid assessments originally securing the Bond. '['his reduction in the amount of principal prepaid shall be 3 balanced by a transfer from the special reserve fund to the redemption fund in the same amount. C. The amount maintained in the special reserve fund will never exceed the Reserve Requirement. Proceeds of investment of the special reserve fund shall be deposited in the redemption fund. D. When the amount in the special reserve fund equals or exceeds the amount required to retire the remaining unmatured bonds (whether by advance retirement or otherwise), the amount of the special reserve fund shall be transferred to the redemption fund, and the remaining installments of principal and interest not yet due from assessed property owners shall be cancelled without payment. Section 6. PAYMEN`f ON THE BOND. The principal and interest on the Band shall be payable at the office of the County Treasurer of the County of Butte, 25 County Center Drive, Orovillc, California 95965. Principal and interest shall be paid by check, draft or warrant mailed to the registered owner of the Bond at the owner's address appearing on the register maintained by the County Treasurer on the 15th day of the month preceding the date of payment. Section 7. ADVANCE, RE`IYIREMI?N`I" OF BONDS. The Bond or any portion thereof in the amount of $1,000.00 or any integral multiple thereof, may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving at least 30 days' notice by registered or certified mail or by personal service to the registered owner thereof at such owner's address as it appears on the registration books of the County Treasurer and by paying principal and accrued interest, without premium. Section S. KI?RI?GIS'I'RA"1'1ON. `I"he Bond may be registered to a new owner by completing the assignment certificate on the reverse of the Band and delivering the Bond to the County Treasurer. Upon reregistration, the Bond may be replaced by one or more bonds of the same maturity and aggregate amount in denominations of X1,000 or any integral multiple thereof. Section 9. COVF,NAN'1'S. In the event of a default in the payment of the Bond or any installment of interest thereon, the owner of the Bond shall have the remedies set forth in the Improvement Bond Act of 1915. In addition, the Board of Supervisors makes the following covenants, which shall constitute a contract with the Band owner: Section 9.1. FORF,CLOSURF, OF LIENS. Not later than October 1 in any year, the County of Butte shall file an action in the Superior Court to foreclose the lien of each delinquent assessment if the sum of uncured assessment delinquencies for the preceding fiscal year cxcceds five percent (5%) of the assessment installments posted to the tax roll for that fiscal year. 4 Section 9.2. AKBI'1'RAGE. During the term of the Bond, the County of Butte will make no use of band proceeds which, if such use had been reasonably expected at the date the Bond is issued, could have caused the Bond to be an "arbitrage bond" within the meaning of Section 148 of the United States Internal Revenue Codc of 1986, and regulations of the Internal Revenue Service adopted thereunder, and further shall rebate to the United States any amounts required to be rebated on account of arbitrage in accordance with the provisions of that Code and those regulations. Section 9.3. MAIN.L"I:NANCE OF TAX EXEMPTION. The County of Butte will take all reasonable actions required to maintain the status of interest on the Bonds as excludable from grass income for federal income tax purposes and as exempt from the State of California personal income taxes. * * ~ PASSED AND ADOPTED by the Board of Supervisors of the County of Butte, State of California, on the 25th day of May, 1999, by the following vote: AYES: SupCT'v1SOT'S Beeler, tloux, Josiassen, Davis and Chair Dolan NOES: None ABSENT: None NOT VOTING: None ~ ~ ~~ ___ Jane Igo pan, Chair A`I"TES' ": JOHN S. BLACKLOCK, Chief Administrative Officer and Clerk of the Berard of Supervisors -~1 , ~ _ ,~ r'-- ~~~ l ~ ~ 77 ~- L ~~~ 5 EXHIBIT A United States of America State of California County of Butte REGISTERED REGISTERED Number R-1 $326,398.55 IMPROVEMENT BOND COUNTY OF BUTTE DRESCHER TRACT ASSESSMENT DISTRICT SERIES NO. 1999-1 IN"["ERES'T RATE MATURITY DATE % September 2, 2037 BOND DA`I"E 1.999 REGISTERED OWNER: UNT`I'ED S`T'ATES OF AMERICA. PRINCIPAL SUM: '1"HREE HUNDRED 'T'WENTY-SIX "THOUSAND `I'HRI;I; HUNDRED NINETY-EIGHT AND 55/100 DOLLARS Under and by virtue of the Improvement Bond Act of 1915, Division 10 (commencing with Section 8500), of the Streets and Highways Code (the "Act"), the County of Butte, State of California (the "County"), will, out of the redemption fund far the payment of the Band issued upon the unpaid assessments made for the acquisirian, work and improvements more fully described in proceedings taken pursuant to Resolution of Intention No. 97-88, adopted by the Board of Supervisors of the County on the 8th day of July, 1997, pay to the registered owner stated above or registered assigns, on the maturity date stated above, the principal sum stated above, in lawful money of the LJnitcd States of America and in like manner will pay interest from the interest payment date next preceding the date on which this Bond is authenticated, unless this Bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this Bond is authenticated and registered prior to March 2, 2000, in which event it shall bear interest from its date, until payment of such principal sum shall have been discharged, at the rate per annum stated above, payable semiannually on March 2 and September 2 in each year commencing on March 2, 2000. Said interest share is computed by: (a) multiplying the amount of the unpaid principal of the Bond by the Bond interest rate ( %) and dividing the product by 365 days; and (b) multiplying the daily accrual factor determined in (a) by the number of days from the last interest payment date to the next interest payment date. 6 't'his Band is subject to mandatory advance redemption without premium, on September 2 in accordance with the following schedule and in the following amounts: Amount to be Amount to be Year Redeemed Year Redeemed 2000 ~ 1,398.55 2019 $ 8,000.00 2001 5,000.00 2020 10,000.00 2002 5,000.00 2021 10,000.00 2003 5,000.00 2022 10,000.00 2004 5,000.00 2023 10,000.00 2005 5,000.00 2024 10,000.00 2006 5, 000.00 202 5 10, 000.00 2007 5,000.00 2026 10,000.00 2008 5,000.00 2027 10,000.00 2009 5,000.00 2028 10,000.00 2010 5,000.00 2029 10,000.00 2011. 8,000.00 2030 10,000.00 2012 8,000.00 2031. 10,000.00 2013 8,000.00 2032 10,000.00 2014 s,ooo.o0 2033 13,000.00 2015 8,000.00 2034 15,000.00 2016 8,000.00 2035 15,000.00 2017 8,000.00 2036 1.5,000.00 2018 8,000.00 2037 15,000.00 (mat.} The interest and sinking fund redemptions hereon arc payable by check or draft mailed to the registered owner hereof at the owner's address as it appears on the registration books of the County `i"reasurer of the County {the "County `1"reasurer"), or at such address as may have been filed with the County Treasurer for that purpose, as cif the fifteenth day of the month immediately preceding each intcrest payment date. This Bond will continue to bear interest after maturity at the rate above stated, provided, it is presented at maturity and payment thereof is refused upon the sale ground that there are not sufficient moneys in said redemption fund with which to pay same. If it is not presented at maturity, intcrest thereon will run until maturity. This Bond shall not be entitled to any benefit under the Act or the Resolution Authorizing Issuance of A Single Term Bond (the "Resolution of Issuance"), or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the County Treasurer. 7 This Bond is issued for the purpose of providing means for paying for the improvements described in said proceedings, and is secured by the moneys in said redemption fund and by the unpaid portion of said assessments made for the payment of said improvements, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hcrcof, in person or by the owner's attorney duly authorized in writing, at said office of the County Trcasurcr, subject to the terms and conditions provided in the Resolution of issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer, a new registered Bond or Bonds, of any authorized denomination or denominations, of the same maturity, for the same aggregate principal amount, will be issued to the transferee in exchange therefor. Bonds shall be registcrcd only in the name of an individual (including joint owners), a corporation, a parmcrship or a trust. Neither the County nor the County Trcasurcr shall be required to make such exchange or registration of transfer of bonds during the period commencing with the fifteenth day of the month preceding any interest payment date and ending on said interest payment date. The County and the County Trcasurcr may treat the registcrcd owner hcrcof as the absolute owner for all purposes, and the County and the County Treasurer shall not be affected by any notice to the contrary. This Bond or any portion of it in the amount of X1,000 or any integral multiple thereof, may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving at least 30 days' notice by registcrcd or certified mail or by personal service to the registered owner hereof at such owner's address as it appears on the registration books of the County Trcasurcr and by paying principal and accrued interest without premium. '11~is Bond is issued as evidence of a loan made by the United States of America, acting through USDA/Rural Development (formerly Farmers Home Administration), its successors and assigns, pursuant to the Consolidated farm and Rural Development Act, as amended, and shall be subject to the present and future regulations of said lender to the extent they are not in conflict with the express provisions hcrcof or the Kesolution of Issuance. 8 IN WI`T'NESS WNEItI:OF, said County has caused this Bond to be signed by the County Treasurer and the Chief Administrative Officer and Clerk of the E3oard of Supervisors, and has caused its corporate seal to be impressed hereon, all as of the day of 1.999. Chief Administrative Officer and Clerk of the Board of Supervisors COUNTY OF BUTTE County `T'reasurer REGISTRATION 'T'his Bond has been initially registcrcd on the date first herein set forth in the name of the person first herein set forth, and both the principal of and interest on this Bond are payable solely to such registered owner; provided that this Bond may be transferred on the registration books kept by the County Treasurer by such registered owner or agent duly authorised in writing, or by any successor registcrcd owner, whereupon the prior registration noted hereon shall be cancelled by said County Treasurer and the name of the new registered owner shall be inserted hereon, and thereafter both the principal of and interest on this Bond shall be payable solely to such registered owner. NOTE: There must be no writing in the space below except by the County Treasurer. Date of Name and Address of Signature of Registration Itegistercd Owner County Treasurer 9 ItECOItD OF REDEMPTION IN ADVANCE OF MATURI'T`Y OF' I30NDS REPRESENTED I3Y "I"HIS I30ND Bond Datc of Principal Date Signature of Number(s) Maturi Amount Redeemed County Treasurer ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer unto the within registered bond, together with accrued interest thereon, and hereby irrevocably constitute(s) and appoint(s) as attorney to transfer the same on the registry books kept for that purpose by the County `T'reasurer, with full power of substitution in the premises. Dated: NO`1"E: "I'he signatures} must be guaranteed by a member of an institution which is a participant in the Securities 'T'ransfer Agent Medallion Program or other similar program. la I hereby certify that the following is a correct copy of the signed Iegal opinion of STURGIS, NESS, I3RUNSELL & ASSAF a professional corporation, Pleasanton, California, on file in my office. Chief Administrative Officer and Clerk of the Board of Supertirisors 11