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HomeMy WebLinkAbout4237
RESOLUTION NO. 4237
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARCADIA DECLARING A POLICY TO
USE NET REVENUES FROM THE RACE TRACK
ADMISSIONS TAXES TO PAY THE PRINCIPAL AND
INTEREST ON PROPOSITIONS "A" AND "B"
BONDS AND APPROVING A STATEMENT IN
COMPLIANCE WITH ELECTIONS CODE, SECTIONS
5300-5304.
WHEREAS, the City Council has previously expressed its
intention to use race track admissions taxes for the purpose of
paying the principal and interest on the bonds which may be
authorized by the voters at the municipal election to be held on
February 29, 1972; and
WHEREAS, it is desirable to formalize said previously
expressed intention of the City Council; and
WHEREAS, the City Council is required to make a s ta te-
ment to ge submitted to the voters ~n the sample ballot for said
election relating to the payment of principal and interest on
said bonds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA
RESOLVES AS FOLLOWS:
SECTION 1. That the City Council hereby declares a
policy that if either or both Propositions "A" and "B" are passed
at the February 29, 1972, municipal election and bonds are issued
and sold pursuant thereto, payment of principal and interest on
said bonds will be paid from net revenues from race track admis-
sions taxes, which are estimated to be substantially more than the
amounts which will be required annually to pay principal and
interest on both bond issues.
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4237
SECTION 2 . That the "s ta t;,ement In Compliance With
Elections Code, Sections 5300-5304, Relative To Proposition 'AI"
and the "Statement In Complfance With Elections Code, Sections
5300-5304, Relative To Proposition 'B, ,II which are marked respectively
Exhibit "A" and Exhibit "B" and attached hereto and made a part
hereof as though set forth at length herein, are hereby approved,
and the City Clerk is ordered to submit the same to the voters
with the sample ballot for the municipal election to be held
February 29, 1972.
SECTION 3. The City Clerk shall certify to the adoption
of this resolution.
I HEREBY CERTIFY that the foregoing resolution was
adopted at a regular meeting of the City Council of the City of
Arcadia held on the
1st day of February
, 1972, by the
affirmative vote of at least three Councilmen, to wit:
AYES: Councilmen Arth, Butterworth, Considine,
Hage and Helms
NOES: None
ABSENT: None
&~~ 7i/U ~ A d~
City Clerk of the City of Arcadia
SIGNED AND APPROVED this
1st
ATTEST:. ;:
~4~
City Clerk
(SEAL)
ayor of the City of Arcadia
" .,-
-2-
4237
Statement In Compliance With
Elections Code, Sections 5300-5304,
Relative To Proposition "A".
As shown on the enclosed sample ballot, an election will be
held in the City of Arcadia on February 29, 1972, for the purpose
of submitting to the electors of said City two propositions for
the issuance of bonds, Proposition "A" and Proposition "B".
The following statement is made for the purpose of presenting
to the voters the most accurate, available information relating to
the payment of the principal of and interest on the bonds referred
to .in Proposition "A".
If Proposition "A" passes, the interest on and the principal
of such bonds as are authorized and sold will be payable from
the proceeds of tax levies upon the taxable property in the City
if other revenues are not available. Other revenues will be
available pursuant to the declared policy of the City Council to
use net revenues from the race track admissions tax to pay the
principal of and interest on the bonds referred to in Proposition "A"
and Proposition "B".
It is estimated that the amount of revenues that will be
available annually from race track admissions taxes in each year
beginning in the fiscal year 1972-73 will be at least $385,000.00.
Based on the projections set forth below, the estimated maximum
amount necessary to pay the annual principal and interest on the
Proposition "A" bonds would be $99..500.00.
Based on the projec-
tions set forth in the accompanying statement relating to the
Proposition "B" bonds, the estimated maximum amount necessary to
pay the annual principal and interest on the Proposition "B" bonds
would be $52,500.00.
The total estimated maximum bond
requirements in anyone year would be $147,250.00.
Exhibit "A"
Page 1
If the bonds referred to in Proposition "A" are authorized,
the present plan is that $1,000,000.00 of bonds, the entire
amount authorized by said Proposition "A", will be sold on or
about August 15, 1972, dated on or about September 1, 1972,
principal maturing on the anniversary of their date, $45,000.00
in 1973, and in each year through 1937 with cumulative increments
of $5,000.00 added each year except 1974, 1977, 1980, 1933 and 1986.
The bonds will bear interest at an estimated rate of 5% per annum.
The first fiscal year after the sale of the bonds will be
the fiscal year 1973-74. It is estimated that the assessed value
of all taxable property in the City as shown on the assessment
roll for such fiscal year will be $146,063,017.00. Based upon
the foregoing estimates and projections, the tax rate which would
be required to fund said bond issue during such fiscal year
1973-74 would be 6.35 cents per $100 of assessed valuation, but
if revenues from race track admissions taxes are used to fund
said bond issue, as above estimated and proposed, no increased
tax rate or taxes therefrom would be required.
The fiscal year in which the highest tax rate required to
fund said bond issue would be levied is estimated to be the
fiscal year 1975-76. It is estimated that the assessed value of
all taxable property in the City as shown on the assessment roll
for such fiscal year will be $148,998,883.00. Based upon the
foregoing estimates and projections, the tax rate which would be
required to fund said bond issue during such fiscal year 1975-76
would be 6.578 cents per $100 of assessed valuation, but if
revenues from race track admissions taxes are used to fund said
bond issue, as above estimated and proposed, then no tax rate
or taxes therefrom would be required.
Exhibit "A"
Page 2
.
The above estimates and projections are based on current
information, so that the actual figures which will be used in the
future may vary from such estimates and projections. For example:
The actual interest rate which bonds sold will bear will depend
upon the bond n~rket at the time of sale, so the interest rate
may be lower or higher than the figure of 5% which is used in the
above estimates. The actual times of sales of said bonds and the
amount sold at any given time will be governed by the needs of the
City, the state of the bond market and other factors. The actual
assessed values during the several future years will depend upon
the then amount of taxable property within the City and the value
thereof, so the total assessed value of City property for the
years 1973, 1974 and 1975 may be higher or lower than the estimates
used above.
The foregoing statement has been approved by and is submitted
by order of the City Council of the City of Arcadia.
~~~
Christine Van Maanen
City Clerk of the
City of Arcadia
Exhibit "A"
Page 3
Statement In Compliance With
Elections Code, Sections 5300-5304,
Relative To Proposition "B".
As shown on the enclosed sample ballot, an election will be
held in the City of Arcadia on February 29, 1972, for the purpose
of submitting to the electors of said City two propositions for
the issuance of bonds, Proposition "A" and Proposition "B".
The following statement is made for the purpose of presenting
to the voters the most accurate, available information relating to
the payment of the principal of and interest on the bonds referred
to in Proposition "B".
If Proposition "B" passes, the interest on and the principal
of such bonds as are authorized and sold will be payable from
the proceeds of tax levies upon the taxable property in the City
if other revenues are not available. Other revenues will be
available pursuant to the declared policy of the City Council to
use net revenues from the race track admissions tax to pay the
principal of and interest on the bonds referred to in Proposition "A"
and Proposition "B".
It is estimated that the amount of revenues that will be
available annually from race track admissions taxes in each year
beginning in the fiscal year 1972-73 will be at least $385,000.00.
Based on the projections set forth below, the estimated maximum
amount necessary to pay the annual principal and interest on the
Proposition "B" bonds would be $52,500.00.
Based on the projec-
tions set forth in the accompanying statement relating to the
Proposition "A" bonds, the estimated maximum amount necessary to
pay the annual principal and interest on the Proposition "A" bonds
would be $99J500.00.
The total estimated maximum bond
requirements in anyone year would be $147,250.00.
Exhibit "B"
Page 1
If the bonds referred to in Proposition "B" are authorized,
the present plan is that $500,000.00 of bonds, the entire amount
authorized by said Proposition "B", will be sold on or about
August 15, 1972, dated on or about September I, 1972, principal
maturing on the anniversary of their date, $20,000.00 in 1973,
and in each year through 1987 with cumulative increments of
$5,000.00 added each year except in 1975, 1976, 1978, 1979, lS80, 1982,
1984 and 1985. The bonds will bear interest at an estimated rate
of 5% per annum.
The first fiscal year after the sale of the bonds will be
the fiscal year 1973-74. It is estimated that the assessed value
of all taxable property in the City as shown on the assessment
roll for such fiscal year will be $146,063,017.00. Based upon
the foregoing estimates and projections, the tax rate which would
be required to fund said bond issue during such fiscal year
1973-74 would be 3.355 cents per $100 of assessed valuation,
but if revenues from race track admissions taxes are used to
fund said bond issue, as above estimated and proposed, no
increased tax rate or taxes therefrom would be required.
The fiscal year in which the highest tax rate required to
fund said bond issue would be levied is estimated to be the
fiscal year 1973-74. It is estimated that the assessed value
of all taxable property in the City as shown on the assessment
roll for such fiscal year will be $146,063,017.00. Based upon
the foregoing estimates and projections, the tax rate which would
be required to fund said bond issue during such fiscal year
1973-74 would be 3.355 cents per $100 of assessed valuation, but
if revenues from race track admissions taxes are used to fund
said bond issue, as above estimated and proposed, then no tax
rat~ or taxes therefrom would be required.
Exhibit "B"
Page 2
The above estimates and projections are based on current
information, so that the actual figures which will be used in the
future may vary from such estimates and projections. For example:
The actual interest rate which bonds sold will bear will depend
upon the bond market at the time of sale, so the interest rate
may be lower or higher than the figure of 5% which is used in the
above estimates. The actual times of sales of said bonds and the
amount sold at any given time will be governed by the needs of the
City, the state of the bond market and other factors. The actual
assessed valAes during the several future years will depend upon
the then amount of taxable property within the City and the value
thereof, so the total assessed value of City property for the
years 1973, 1974 and 1975 may be higher or lower than the estimates
used above.
The foregoing statement has been approved by and is submitted
by order of the City Council of the City of Arcadia.
~~5:?~
Christine Van Maanen
City Clerk of the
City of Arcadia
Exhibit "B"
Page 3