HomeMy WebLinkAboutResolution No. 08-C019Ll
RESOLUTION NO. 08-C19
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA, AMENDING THE FISCAL YEAR 2007-
2008 OPERATING BUDGET FOR THE WATER UTILITY TO
AUTHORIZE APPROPRIATIONS NECESSARY TO COVER
INSTALLMENT PAYMENTS MADE BY TRUSTEE ON 2006
PARITY REVENUE BONDS.
WHEREAS, in 2006 the City Council authorized the issuance of debt in the amount of
$54,850,000 in the form of parity revenue bonds in order to construct a new water treatment
plant and other water utility infrastructure, such as transmission lines and reservoirs; and
WHEREAS, the debt financing agreements for the 2006 parity revenue bonds require the
Trustee, Wells Fargo, to make payment to bondholders from the bond proceeds and interest
earnings on those proceeds for approximately the first 18 months of the debt service; and
WHEREAS, the installment payments made by the Trustee amounted to $2,774,448.78
during fiscal year 2007-2008; and
WHEREAS, the Utilities Department did not include installment payments made by the
Trustee in its fiscal year 2007-2008 operating budget; and
WHEREAS, the existing accounting standards require payments made from bond
proceeds held in trust by a Trustee to be appropriated each year through an adopted operating
budget; and
WHEREAS, Azusa Municipal Code Section 2-450 requires that all budget amendments
in excess of $1 million be approved by resolution at a public hearing;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That the City Council has conducted a public hearing for the purpose of
considering an amendment to the Water Utility's Fiscal Year 2007-2008
Operating Budget in the amount of $2,774,448.78.
SECTION 2. That the Water Utility's Fiscal Year 2007-2008 Operating Budget account
number 32-40-721-530-7001 is hereby amended in the amount of
$2,774,448.78 for the purpose of authorizing an appropriation necessary
to account for installment payments made by the Trustee administering
the Parity Revenue Bonds (Water System Capital Improvements
Program) — Series 2006.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 17' day of March, 2008.
oseph R. Rocha, Mayor
ATTES
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Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 08-C19, was duly adopted by the
City Council of the City of Azusa at a regular meeting of the Council held on the 17`h day of
March, 2008.
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
(04/
Vera Mendoza, City Clerk