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HomeMy WebLinkAbout91-35 6 ? $ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 RESOLUTION NO. 91-35 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH GUARANTEEING REPAYMENT OF WATER TREATMENT PLANT LOAN TO THE STATE OF CALIFORNIA WHEREAS, the City Council of the City of Ukiah has adopted Resolution No. 90-40 accepting a construction loan under California Safe Drinking Bond Law of 1986; and WHEREAS, the City of Ukiah will repay said loan for a period not to exceed 30 years as set forth in the repayment schedule at an interest rate of 3.6024% and for an amount as approved initially or as amended further b~ action of the City Council of Ukiah; and WHEREAS, the City has established a separate special fund to meet payments on said loan as they become due and payable as required under the procedures of California Department of Water Resources. NOW, THEREFORE, BE IT RESOLVED that: 1. A special fund has been designated as the "Water Filtration Plant Debt Service Fund No. 560" and will be funded by revenues as provided by the Water Enterprise Fund No. 820. 2. The amount set aside shall be sufficient to maintain the servicing of the loan as provided in Article A-9 of the Standard Conditions Section of the Contract between the City of Ukiah and the State of California, Department of Water Resources, Loan Contract No. E54304. 3. Amounts in Fund No. 560 shall be used only for the payment of principal and interest on the loan when due or any delinquencies thereon until the loan is repaid in full. 4. The City agrees to levy and collect user charges or other assessments as may be necessary to meet the payments of this loan. Further, it is the intention of the City Council to raise needed revenues 1 5 6 by increasing user rates sufficiently to accumulate the necessary funds for repayment of the loan commitment. PASSED AND ADOPTED this 19th day of December , 1990, by the following roll call vote: AYES: Councilmembers Wattenburger, Shoemaker, Schneiter and Mayor Henderson NOES: None 7 ABSENT: Councilmember McMichael 8 9 10 11 12 12 14 MAYOR 15 16 17 18 19 2O 21 22 23 24 25 26 27 28