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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. -1- 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