HomeMy WebLinkAbout42 of 1976 - A resolution authorizing the issuance of $6,000,000 Salt Lake City, Utah Tax Anticipation Bonds, dat • . Resolution No. 42
Ij By Jennings Phillips, jr.
'.� COMMISSIONER j
I
I i Authorizing the issuance of $6,000,00 ''.00
Salt Lake City, Utah Tax Anticipation,
Bonds, dated July 1, 1976 1
I
I,1• Presented to the goad of Commissional (j
1 i AND PASSED I
JUN 2 4 1976 I
I;i i
i PletWerele*A4K4 i
err moor I
i
I 1
I
Yi
II
I I
1.1
i
!' I
I•
I
•
i , i�
Nati kit, 1,76
iionotakiligjavaine Pheips. Ix.
Corn=4sioner i't*tia Atlas*
W%i V inane*
211 City MILI County NA
ling
Salt Lain City, Mai"
car Coscartissionex Virsinipe:
The roaca of City Contsnissioniral at its roosting today, passo.i
P**Aution No, 43 of 1976, authorising the sal* of ti,000.0110
Tex Anticipation Bonds, dotal Jody 1, itYti.
Yours tinily,
* • r
• ketioe.1
City aocovior "
CCt
Mayor Wilson
Commissioner Aran
Canundosionot Omani
Contatiosiono* nosomoes
TVOSUClit
Au,iitun
Attorney
ROLL CALL
VOTING Aye Nay
• Mr.Chairman
Agraz
Greener
Hogensen Salt Lake City, Utah
Phillips i June 24 , 1976
Result
The Board of Commissioners of Salt Lake City, Salt Lake
County, Utah, met in regular public session at its regular meeting
place in Room 301, in the City and County Building in Salt Lake City,
Utah, at 10:00 o'clock A .M., on June 24 , 1976, with the following
members present:
Ted L. Wilson, Mayor
Jess A. Agraz, Commissioner
Glen N. Greener, Commissioner
Herman J. Hogensen, Commissioner
Jennings Phillips, Jr., Commissioner
There were absent: NONE
There was also present Mildred V. Higham, City Recorder.
After the meeting had been duly called to order and the
roll called with the above results, and after the conduct of other
business, the Mayor announced that one of the purposes of the meeting
was to adopt a resolution authorizing and confirming the sale of
$5,000,000 Tax Anticipation Bonds, dated July 1, 1976, of Salt Lake
City. Thereupon the following resolution was introduced in written
form by Ted L. Wilson, Mayo was read in full, and pursuant to motion
made by Jennings Phillips, JJnd seconded by Jess A. Agraz , was
adopted by the following vote:
Aye: Ted L. Wilson, Mayor
Jess A. Agraz, Cothmissioner -
Glen N. Greener, Commissioner j
Herman J. Hogensen, Commissioner
Jennings Phillips, Jr., Commissioner
Nay: None.
1fIrkt%
The resolution was then signed by the Mayor in open meeting
and recorded by the City Recorder. The resolution is as follows:
RESOLUTION
WHEREAS a report has been made by the Treasurer of Salt
Lake City that it is necessary to raise the sum of Six Million
Dollars ($6,000,000) for the purpose of meeting the current and
necessary expenses of the city and for any other general corporate
purpose for which funds of the city may be legally expended, during
the Fiscal Year beginning July 1, 1976, until the taxes for that
fiscal year are collected, and that such sum can be raised without
incurring any indebtedness or liability in excess of the taxes and
other revenues of the Fiscal Year beginning July 1, 1976, or exceeding
any limit of debt imposed by the Constitution and Statutes of the State
of Utah; and
WHEREAS on June 10, 1976, the following bids were received
by the Board of Commissioners of Salt Lake City for the purchase of
$6,000,000 Tax Anticipation Bonds of Salt Lake City to be dated
July 1, 1976:
NAME OF BIDDER INTEREST RATE PREMIUM NET EFFECTIVE RATE
Zions First National Bank
and Associates 3.68% $ 86 3.678%
The Continental Bank and
Trust Company and
Associates 4.08% $250 4.075%
Commercial Security Bank 3.69% $169 3.687%
Walker Bank & Trust
Company and Associates 3.78% None 3.78%
First Security Bank of
Utah, N.A. 3.74% $ 31 3.739%
WHEREAS it has been determined to confirm the sale of said
Tax Anticipation Bonds at this time and the bid of Zions First National
Bank of Salt Lake City, and associates, for the purchase of such Tax
-2-
Anticipation Bonds is the highest and best offer received, which
offer proposed to purchase said Tax Anticipation Bonds, bearing
interest at 3.68% per annum, at the price of par and accrued interest
to the date of delivery plus a premium of $86;
NOW, THEREFORE, Be It Resolved by the Board of Commissioners
of Salt Lake City, Salt Lake County, State of Utah:
Section 1. That it is hereby found and declared after due
investigation of the best offer possible to be made for the
purchase thereof, Zions First National Bank of Salt Lake City, Utah, and
associates, has agreed to submit and has submitted its offer to
purchase $6,000,000 Tax Anticipation Bonds of Salt Lake City, Utah,
herein authorized, at par and accrued interest to the date of delivery,
plus a premium of $86, bearing interest at the rate of 3.68% per
annum, that said offer to purchase said Tax Anticipation Bonds is the
highest, best and most advantageous offer received and, in the opinion
of the board, the most advantageous offer that might be received there-
for, and that said offer being satisfactory to the board is hereby
accepted. The board agrees to furnish all necessary documents and
information requested by bond counsel and also agrees that the proceeds
of the Tax Anticipation Bonds shall not be invested in such a manner
as to create an unlawful arbitrage.
Section 2. That there shall be issued by Salt Lake City,
Utah, Tax Anticipation Bonds in the amount of $6,000,000 for the purpose
of meeting the current and necessary expenses of the city and for any
other general corporate purpose for which funds of the city may be
legally expended. Said bonds shall be known as "Tax Anticipation Bonds",
shall be numbered 1 to 145, inclusive, dated July 1, 1976, shall bear
interest at the rate of 3.68% per annum from their date until paid,
payable at maturity, shall fall due as to principal on June 30, 1977,
and shall be numbered and be in denominations as follows:
-3-
BOND NUMBERS DENOMINATION AMOUNT
1 to 20 $ 5,000 $100,000
21 to 60 10,000 400,000
61 to 80 25,000 500,000
81 to 110 50,000 1,500,000
111 to 145 100,000 3,500,000
Both principal of and interest on said Tax Anticipation
Bonds shall be payable in lawful money of the United States of
America at Chemical Bank, in New York, New York. Said Tax
Anticipation Bonds shall be signed by the Mayor, attested by the City
Recorder and countersigned by the City Treasurer and shall have
the corporate seal of the city affixed.
•
Section 3. That said Tax Anticipation Bonds, and the
endorsement to appear on the back thereof, shall be in substantially
the following form:
-4-
UNITED STATES OF AMERICA
STATE OF UTAH
COUNTY OF SALE LAKE
SALT LAKE CITY
No. $
TAX ANTICIPATION BOND
KNOW ALL MEN BY THESE PRESENTS:
That Salt Lake City, Salt Lake County, State of Utah, hereby
acknowledges itself to be indebted, and for value received hereby
promises to pay to the bearer hereof, the sum of
THOUSAND DOLLARS ($ ,000)
in lawful money of the United States of America, on the 30th day of
June, 1977, at Chemical Bank, New York, New York, with interest thereon
at the rate of three and sixty-eight hundredths per cent (3.68%)
per annum from date until paid, payable at maturity.
This bond is one of an issue of one hundred forty-five (145)
bonds of like tenor and date numbered from one (1) to one hundred
forty-five (145), inclusive, issued under and pursuant to Section
10-8-6, Utah Code Annotated, 1953.
It is hereby covenanted, certified, recited and declared
that this bond is given in anticipation of the collection of taxes to
be levied for the current fiscal year beginning July 1, 1976, in
evidence of money borrowed to meet the current and necessary expenses
of the city and for any other general corporate purpose for which
funds of the city may be legally expended during said current fiscal
year, until payment of the taxes for such year, that the board of
commissioners shall levy, impose and collect in the year 1976 on all
taxable property within said city a sufficient tax, within the limit
provided by law, to pay principal of and interest on this bond as
same falls due and, together with other budgeted revenues to be
received during such fiscal year, sufficient to pay all budgeted expenses
of said Salt Lake City for such fiscal year, and that a sufficient
fund has been appropriated for the payment of the principal of and
interest on this bond as the same shall fall due. This bond is issued
in anticipation of the payment of such taxes for the year 1976.
It is hereby further certified, recited, and declared that
the entire indebtedness incurred by said Salt Lake City for this
current fiscal year, including this and other bonds, is not in excess
of the taxes and other revenues to be levied and collected by Salt
Lake City for the current fiscal year, beginning July 1, 1976, and
that said indebtedness was and is contracted for the purposes for which
said taxes are to be levied.
It is further certified, recited and declared that all
acts, conditions and things essential to the validity of this bond
exist, have happened and have been done, and that every requirement
of law affecting the issue thereof has been duly complied with, and
that this bond is within every debt and other limit prescribed by the
Constitution and Laws of said State. The full faith, credit, resources
-5-
and all taxable property within the limits of said Salt Lake City
are hereby irrevocably pledged to the levy of taxes for the fiscal
year in which this bond is issued and for the collection and proper
allocation of such taxes and other revenues provided for such fiscal
year to the prompt payment of principal and interest on this bond and
the issue of which it is one, according to its terms.
IN WITNESS WHEREOF, Salt Lake City has executed this bond by
causing it to be signed by its Mayor, attested by its City Recorder
and countersigned by its City Treasurer, and the corporate seal of
the city to be affixed hereto as of the first day of July, 1976.
Mayor
Attest:
City Recorder
Countersigned:
City Treasurer
[SEAL]
There shall be endorsed on each of said Tax Anticipation
Bonds a certificate reading as follows, to-wit:
"AUDITOR'S CERTIFICATE
I hereby certify that the within bond is issued in
accordance with law and is within the debt limit of Salt
Lake City, Salt Lake County, Utah, permitted by the
Constitution and Laws of the State of Utah.
City Auditor,
Salt Lake City, Utah"
-6-
Section 4. That the proceeds derived from the sale of
the Tax Anticipation Bonds shall be used solely for the purpose of
meeting the current and necessary expenses of the city and for any
other general corporate purpose for which funds of the city may be
legally expended, during the Fiscal Year beginning July 1, 1976,
but the holders of the Tax Anticipation Bonds shall be in no wise
responsible for the application of the proceeds thereof by said city
or any of its officers.
Section 5. That there shall be included in the annual tax
levy for the year 1976 for Salt Lake City a tax which, together
with all other revenues of the city other than taxes, shall be
sufficient to pay when due the principal of and interest on the Tax
Anticipation Bonds herein authorized.
Section 6. That there be and is hereby appropriated from
the first collection of taxes for the current year a sufficient fund
to pay the principal and interest on said Tax Anticipation Bonds as
the same shall fall due.
Section 7. That the offer of Zions First National Bank and
associates be, and the same is hereby accepted; that the Mayor, City
recorder, City Treasurer and City Auditor be, and they are hereby
authorized and directed to sign, execute, deliver and issue said Tax
Anticipation Bonds to Zions First National Bank and associates, upon
receipt of the purchase price therefor, and the City Recorder is
hereby authorized and directed to affix the seal of said city thereto.
Section 8. That the proceeds derived from the sale of said
Tax Anticipation Bonds shall not be used in any way so as to render
said Tax Anticipation Bonds "arbitrage bonds" under Section 103(d)
of the Internal Revenue Code and regulations issued or promulgated
thereunder.
-7-
• t
Section 9. That all resolutions and orders or parts there-
of in conflict with the provisions hereof are hereby repealed.
Section 10. That this resolution shall become effective
immediately upon its adoption.
PASSED AND APPROVED by the Board of Commissioners of Salt
Lake City, Salt Lake County, Utah, this 24th day of June, 1976.
-4_);
Ma
Attest:
/ /J
City Recorder
(Other business not pertinent to the above appears in the
minutes of the meeting.)
Upon motion duly made and carried, the meeting was adjourned.
/1(
Mayor
Attest:
AirwC
City Recorder
-8-
STATE OF UTAH
COUNTY OF SALT LAKE )
I, Mildred V. Higham, the duly qualified and acting
City Recorder of Salt Lake City, Utah, do hereby certify, according
to the records of said city in my official possession, that the
above and foregoing constitutes a true and correct copy of excerpts
from the minutes of the meeting of the Board of Commissioners of
Salt Lake City, Utah, held on June 24, 1976, including a resolution
adopted at said meeting, as said minutes and resolution are officially
of record in my possession.
IN WITNESS WHEREOF, I have hereunto subscribed my official
signature and impressed hereon the corporate seal of said city, this
24th day of June , 1976.
City Recorder /�ltivvL-)
(SEAL)
PHH:er
6-18-76 -9-