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HomeMy WebLinkAbout43 of 1975 - A resolution authorizing the issuance of $6,000,000 Salt Lake City, Utah Tax Anticipation Bonds — Se .., i 1 --- il ,1 , 43 Resolution No. 11 By TPnningF PhillipA Jr i 1 ; 11 C011.1•1110NER 1 'Authorizing the issuance of $6,000,000.00'1;1. Salt Lake City, Utah Tax Anticipation 41 'Bonds - Series of July 1, 1975. 1 C 1 , 11 V'' 1 •,,' , 1 Promoted te the bird of CommIssloort , AND PASSED .,.. JUN 3 0 1975 ,1 L zooke 7,7k,far,-4, , I MY 1111001f 1! 1, [1 1' 11 1' 1111 1 1,, 11 11 V 1111 : 0 0 11',e1' 1 i'l jog 30. int Gear of Polio Mass awif 'Woos 212 Ct311 Chy oil CND* Mt Loki City. VIA Nor bosh VW/pm rho ed ' tit 141111110d azscurricx no.0 e` infi, outiooritiog !d. lotousso ot Mt L. City, Utah' i Asitiolgothe Boob • sotto of pity It ► . Iwo fir, 7:1/14144;0.400t____,L_a;4444. EN*"City alpmplmor CC, MAIM ism qswaisoissor 6r Caomitailsoo Looms Comoshslssmar iloposoo City Toomorto Opp. Cl Moo" ROLL CALL VOTING Aye Nay Salt Lake City,Utah, June 30 19 75 Mr.Chairman... I move t at the esolution be adopte Greener Harmsen e C1C1�J H HOGENSEN Phillips RESOLUTION Result TRANSCRIPT OF PROCEEDINGS AUTHORIZING THE ISSUANCE OF $6,000,000.00 SALT LAKE CITY, UTAH 3.50% TAX ANTICIPATION BONDS Series of July 1, 1975 • • The Board of Commissioners of Salt Lake City, Salt Lake County, Utah, met in regular session on Thursday, the 12th day of June, A.D., 1975 at the hour of 10:30 o'clock a.m., at its regular meeting place in the City and County Building, Salt Lake City, Utah. The meeting was called to order and on roll call the following members were present: Conrad B. Harrison Mayor Jennings Phillips, Jr. Commissioner Glen N. Greener Commissioner Herman J. HogenSen Commissioner Stephen L. Harmsen Commissioner Mildred V. Higham City Recorder Joseph L. Fakler City Treasurer After the conduct of other business not pertinent to the following, . - the Board of Commissioners opened bids for the purchase of $6,000,000.00 of Tax Anticipation Bonds of the City, Series of July 1, 1975. The bids were as follows: 1- Walker Bank and Trust Company, bidding for themselves at a rate of 3.50%, plus a premium of $7,200.00, making the net effective rate of 3.38%. 2- The Continental Bank and Trust Company, bidding for them- selves and for the United California Bank, Los Angeles, California, at a rate of 4.07% with no premium. 3- Zions First National Bank, bidding for the Morgan Guaranty Trust Company, New York, New York, at a rate of 3.47%, plus a premium of $121.00. 4- Commercial Security Bank, bidding for themselves and Lehman Brothers Inc., at a rate of 3.73%, plus a premium of $68.00. 5- First Security Bank of Utah, N.A., bidding for themselves and First National City Bank, at a rate of 3.78% with no premium. 6- First Security Bank of Utah, bidding for Mellon Bank and Ehrlich-Bober Co. , Inc., at a rate of 4.24% with no premium. 7- First Security Bank of Utah, bidding for Bank of America, N.T. & S.A., at a rate of 3.79% with no premium. After reading and considering the above bids, it was determined that Walker Bank & Trust Company of Salt Lake City, Utah, had submitted the best and most advantageous bid for the purchase of said bonds. Thereupon, the following resolution was introduced by Commissioner Jennings Phillips, Jr., and was adopted by the following vote: Conrad B. Harrison "Aye" Glen N. Greener "Aye" Stephen L. Harmsen "Aye" Herman J. Hogensen "Aye" -1- Jennings Phillips, Jr. "Aye" The resolution is as follows: A RESOLUTION confirming the sale of $6,000,000.00 Salt Lake City Tax Anticipation Bonds and fixing the interest rate to be borne by said bonds. WHEREAS pursuant to notice of sale, the Board of City Commissioners of Salt Lake City received sealed bids for the purchase of $6,000,000.00 Tax Anticipation Bonds of Salt Lake City, Utah. WHEREAS the bid of Walker Bank & Trust Company of Salt Lake City, Utah has been determined to be the highest and best bid for the purchase of said bonds, said bid being as follows: June 12, 1975 Honorable Mayor and Board of City Commissioners 210 City & County Building Salt Lake City, Utah Gentlemen: In response to your invitation for us to bid for an aggregate of $6,000,000.00 Salt Lake City, Utah Tax Anticipation Bonds, we submit the following: For $6,000,000.00 of your legally issued Tax Anticipiation Bonds to be dated July 1, 1975 and to be due June 30, 1976, bearing interest at the rate of 3.50% per annum, we will pay $6,007,200.00 plus accrued interest from date of issue to the date of delivery to us in federal funds. Both principal and interest are to be payable at maturity at a bank or trust company designated by us. Bonds are to be issued in convenient denominations as specified by us. You are to take such action and pass such resolutions and execute and certify all such documents as our attorneys may require to the end that, in their opinion, the bonds may be legally issued. The bonds shall contain a covenant by you that you will comply at all times during the period the bonds are out- standing with all requirements of the Internal Revenue Code of 1954 as amended and in particular Section 103 thereof, and all regulations now or hereafter adopted pursuant to. We will provide the bond forms and furnish the approving legal opinion at our expense. This offer is for immediate acceptance only. The bonds are to be delivered as soon as conveniently possible. Attached is our Cashier's Check for $120,000.00 payable to Salt Lake City Corporation which is evidence of our "good faith" in this trans- action. If this is the winning bid, this check should be applied to the purchase price of the bonds when they are delivered to us. If our bid is rejected, the check is to be returned to us promptly. Net Effective Rate: 3.38% Respectfully submitted, WALKER BANK & TRUST COMPANY By: Glen V. MargetLs Assistant Vice President - 2 - The above and foregoing offer is hereby accepted on behalf of Salt Lake City, Utah, this 30th day of June, 1975. ATTEST: //%/,f/ ,- i 1! City Recorder Mayor (SEAL) WHEREAS, in the opinion of the,Board of City Commissioners, it is to the best interests of Salt Lake City that such bid be accepted and the sale of said bonds be approved and confirmed; NOW, THEREFORE, Be It Resolved by the Board of Commissioners of Salt Lake City as follows: Section 1. The bid of Walker Bank & Trust Company of Salt Lake City, Utah, for the purchase of $6,000,000.00 Tax Anticipation Bonds described in the offer to purchase be and the same is hereby accepted. Section 2. Said bonds shall bear interest at the rate of 3.50% per annum interest payable at maturity. Section 3. Said bonds shall be delivered to the purchasers thereof as soon as may be after the adoption of this resolution persuant to due payment therefor in accordance with the terms of the sale. Section 4. This resolution shall be in full force and effect immediately upon adoption. Adopted this 30th day of June, 1975. Mayor (SEAL) ATTEST: City Recorder_ The Board of Commissioners of Salt Lake City, Salt Lake County, Utah, met in regular session on the 30th day of June, A.D., 1975, at the hour of 10:30 O'clock,a.m. , at its regular meeting place in the City and County Building, Salt Lake City, Utah. The meeting was called - 3 - to odder by Mayor Conrad B. Harrison, and on roll call the following members were present: Conrad B. Harrison Mayor Jennings Phillips, Jr. Commissioner Herman J. Hogensen Commissioner Stephen L. Harmsen Commissioner Glen N. Greener Commissioner Mildred V. Higham City Recorder Joseph L. Fakler' City Treasurer The City Treasurer stated that the bid of Walker Bank & Trust Company for the purchase of $6,000,000.00 Tax Anticipation Bonds of Salt Lake City, Utah dated July 1, 1975, had heretofore been approved and recommended adoption of a resolution to authorize the issuance of such bonds. After full discussion, Mayor Conrad B. Harrison introduced and moved the adoption of the following resolution, which resolution was adopted by the following vote: Conrad B. Harrison "Aye" Jennings Phillips, Jr. "Aye" Glen N. Greener "Aye" Stephen L. Harmsen "Aye" Herman J. Hogensen "Aye" The Resolution is as follows: A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF SIX MILLION DOLLARS ($6,000,000.00) TAX ANTICIPATION BONDS OF SALT LAKE CITY, UTAH, SERIES OF JULY 1, 1975. WHEREAS, there is an immediate and pressing need for the raising of funds in the amount of Six Million Dollars (6,000,000.00) for the purpose of meeting the current expenses of Salt Lake City for the fiscal year ending June 30, 1976, until the payment of taxes and the receipt of other revenues for said fiscal year, and WHEREAS, said sum now to be raised, together with other indebted- ness incurred for the purpose of.meeting the current expenses of Salt Lake City for the fiscal year ending June 30, 1976, is not in excess of the revenues to be raised for such fiscal year. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF SALT LAKE CITY, UTAH: • - 4 - • .Section 1. The City of Salt Lake City, Salt Lake County, Utah, for the purpose of meeting expenses of said city for the fiscal year July 1, 1975 through June 30, 1976, until the payment of taxes and other revenues for such fiscal year, shall borrow the sum of Six Million Dollars ($6,000,000.00) and for that purpose and as evidence of such indebtedness shall issue Six bonds of the denomination of One Million Dollars ($1,000,000.00) each, numbered one (1) to six (6) , inclusive, dated July 1, 1975, due and payable June 30, 1976, bearing interest at the rate of three and fifty hundredths percent (3.50%) per annum, interest payable at maturity, both principal and interest being payable at the places designated in the form of bond set forth below. Said bonds shall be in substantially the following forms: UNITED STATES OF AMERICA STATE OF UTAH SALT LAKE CITY TAX ANTICIPATION BOND SERIES OF JULY 1, 1975 No. $1,000,000.00 KNOW ALL MEN BY THESE PRESENTS: That the above-named duly incorporated City in the State of Utah, hereby acknowledges itself to be indebted and for value received hereby promises to pay to the bearer hereof the sum of One Million Dollars ($1,000,000.00) in lawful money of the United States of America on the 30th day of June, 1976, at the Head Office of Walker Bank & Trust Company, with interest thereon at the rate of Three & Fifty/100ths per cent (3.50%) per annum from date until paid, interest payable at maturity. This bond is one of a series of similar bonds of like designation issued in the aggregate amount of Six Million Dollars ($6,000,000.00) issued pursuant to Section 10-8-6, Utah Code Annotated, 1953. The governing body of the above-mentioned City shall levy in the fiscal year ending June 30, 1976, a sufficient tax and shall provide for the collection of sufficient revenues other than taxes to pay the principal and interest on this bond as the same shall fall due, and this bond is issued in anticipation of the payment of such taxes and the collection of such revenues for such fiscal year. It is hereby certified, recited and declared that the entire indebtedness of said City hereby incurred is not in excess of the taxes and other revenues of said City to be levied and collected for such fiscal year and that said indebtedness was and is contracted for the purpose for which said taxes and revenues are levied and to be collected. It is further certified, recited and declared that all conditions, acts 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 hereof 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, and that the full faith and credit of the above-named City are hereby irrevocably pledged to the punctual payment of the principal and interest of this bond according to its terms. IN WITNESS WHEREOF, the above-named City has caused this bond to be signed by its Mayor, its corporate seal to be hereunto affixed, and countersigned by its City Recorder, as of the 1st day of July, 1975. Countersigned: (Do not sign) (Do not sign) City Recorder Mayor • '(SEAL) There shall be endorsed on each of said bonds the following certificate: "City Auditor's Certificate" I hereby certify that this bond is within the lawful debt limit of Salt Lake City, Utah, and is issued according to law. (Do not sign) City Auditor Section 2. All the covenants, statements, representations and agreements contained in said bonds are hereby adopted as covenants, statements, representations, agreements and promises of Salt Lake City, Utah. Section 3. The Mayor of Salt Lake City is hereby authorized and directed to sign and execute said bonds and the City Recorder is hereby authorized and directed to countersign the same and affix the seal of Salt Lake City to said bonds and the City Auditor is hereby authorized and directed to place upon said bonds the certificate in the manner and form set forth above and the act of the Mayor, City Recorder and City Auditor in so doing are and shall be the act and deed of Salt Lake City. Section 4. The Board of Commissioners shall levy in the fiscal year ending June 30, 1976, a sufficient tax or provide for the collection of sufficient revenues to pay the principal and interest on said bonds as the same shall fall due and for the payment of said bonds and the interest thereon the full faith, credit and taxing power of Salt Lake City are hereby irrevocably pledged and the Board of Commissioners hereby covenants with the holders of said bonds that it will levy in such fiscal year sufficient taxes and provide for the collection of sufficient revenues for the payment of the principal and interest of said bonds. Section 5. Walker Bank & Trust Company has offered to purchase said bonds at a price of par plus accrued interest to the date of delivery of said bonds, which price is satisfactory to the Board of Commissioners and which offer is the highest, best, and most advantageous received for the purchase of said bonds and will result in the lowest obtainable rate of interest on said bonds. Said offer is and the same is hereby accepted and the City Treasurer is hereby authorized and directed to deliver said bonds to the purchaser thereof upon receipt of the purchase price therefor. - 6 - ;Section 6. It is hereby resolved and certified that all or. a major portion of the proceeds of said bonds will not be used directly or indirectly to acquire securities within the meaning of the Internal Revenue Code or obligations (other than obligations of a state, a territory, a possession of the United States or any political subdivision of the foregoing or of the District of Columbia) which may be reasonably expected at the time of issuance of such bonds to produce a yield over the term of the bond;which is materially higher (taking into account any discount or premium) than the yield on the bonds themselves or to replace funds which were used directly or indirectly to acquire such securities or obligations; provided, the foregoing certification shall not preclude said City through its proper officers, from investing all or part of the proceeds of such bonds for a temporary period in securities of other obligations until such proceeds are needed for the purpose of paying the current expenses of said City. The City covenants it will make no use of the proceeds of said issue of bonds which will cause the same to be arbitrage bonds within the meaning of Section 103 (d) , Internal Revenue Code of 1954 as amended, and the City will comply with the requirements of said section and the lawful regulations adopted pursuant thereto throughout the term of the issue. Section 7. In the opinion of the Board of Commissioners because of the necessity for funds to meet the current expenses of Salt Lake City, an emergency is hereby declared it being necessary for the peace, health and safety of the inhabitants of Salt Lake City, that this resolution shall take effect at once. Section 8. This resolution shall take effect immediately. PASSED by the Board of Commissioners of Salt Lake City, Utah, and approved this 30TH day of June, 1975. Mayor ATTEST: City Recorder - 7 •STATE OF UTAH ss COUNTY OF SALT LAKE) I, Mildred V. Higham , the duly chosen, gualifiedwidlogicgtI4INT City Recorder of Salt Lake City, Salt Lake County, Utah, do hereby certify as follows: 1. The foregoing and attached pages are a full, true and correct copy of the minutes of a regular meeting of the Board of Commissioners of Salt Lake City, Utah, duly and lawfully called and held on the 30th day of June, 1975 at the hour of 10:30 o'clock a.m. insofar as the minutes of such meeting refer to or concern the issuance of $6,000,000.00 Salt Lake City, Utah Tax Anticipation Bonds, dated July 1, 1975; that said minutes and the resolution contained therein have been duly recorded in my office in a book kept for that purpose; that said meeting was duly called and lawfully held at the time and place specified by ordinance of said City for regular meetings of said Board of Commissioners establishing each Tuesday, Wednesday and Thursday at 10:00 o'clock a.m. as the time and the City Commission Chambers in the City and County Building, Salt Lake City, Utah as the place for holding of regular meetings of said Board of Commissioners; that the fore- going proceedings were in fact held as in said minutes specified. 2. Salt Lake City, Utah is a city of the first class, was incorporated on January 6, 1851, and according to the United States census for the year 1970 had at that time a population of 176,793. 3. The names of the members of the Board of Commissioners and municipal officers of Salt Lake City are as follows: Term Expires Mayor Conrad B. Harrison January 5, 1976 Commissioner Stephen L. Harmsen January 5, 1976 Commissioner Jennings Phillips, Jr. January 5, 1976 Commissioner Glen N. Greener January 2, 1978 Commissioner Herman J. Hogensen January 2, 1978 City Auditor Lawrence A. Jdnes January 2, 1978 City Treasurer Joseph L. Fakler Appointed January 1, 1972, still in office City Recorder Mildred V. Higham Appointed January 7, 1975, still in office 4. There is no litigation pending or threatened affecting in any way the legality of the $6,000,000.00 Salt Lake City, Utah Tax Anticipation Bonds, dated July 1, 1975, or any similar issue of bonds - 8 - • Issued by Salt Lake City of the boundaries of the City or the title to office of any of the officers thereof. 5. No referendum petition has been filed affecting in any way the resolution passed by the Board of Commissioners of Salt Lake City, Utah, authorizing the issuance of $6,000,000.00 Salt Lake City, Utah Tax Anticipation Bonds, dated July 1, 1975. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of Salt Lake City this 30th day of June, 1975. i// City Recorder (SEAL) • $TATE.:OF UTAH ) ss COUNTY OF SALT LAKE) The undersigned officers of Salt Lake City, Utah, indicated by the official title opposite our names, hereby certify that on or before July 1, 1975, we, and each of us, officially executed each of the $6,000,000.00 Salt Lake City, Utah Tax Anticipation Bonds, dated July 1, 1975, each in the denomination of $1,000,000.00 each, numbered 1 to 6 inclusive, bearing interest at the rate of Three and Fifty hundredths per cent (3,50%) per annum, both principal and interest being due and payable on June 30, 1976, by signing said bonds in the manner and capacity indicated by our signatures and titles subscribed hereto, being on the date this certificate bears and at the time said bonds were signed by us, duly chosen, qualified and acting officers of said city, indicated by said titles and authorized in all respects to execute the same. We further certify that NO LITIGATION of any nature is NOW PENDING or THREATENED, RESTRAINING or ENJOINING the issuance of and delivery of said bonds or the levy and collection of taxes and other revenues to pay the principal and interest of the same nor in any manner questioning the proceedings and authority under which the same are issued or the validity thereof; that neither the corporate existence or boundaries nor the title of the present officers to their respective offices is being contested; that no authority or proceedings for the issuance of said bonds has been repealed, revoked or rescinded. The corporate seal of Salt Lake City, Utah is impressed on each of said bonds. The undersigned Auditor further certifies that he has executed on the back of said bonds a certificate reading substantially as follows: City Auditor's Certificate I hereby certify that this bond is within the lawful debt limit of Salt Lake City, Utah, and is issued according to law. (Do not sign) City Auditor - 10 - :. IN WITNESS WHEREOF, we have hereto affixed our signatures and impressed thereon the official seal of Salt Lake City, Utah, on this 30thday of June, 1975. SIGNATURES OFFICIAL TITLE Mayor, Salt Lake City, Utah l � G' /Y L ' �jl�,'�C(i/ f�G/ l/� City Recorder, Salt Lake City, Uta City Auditor, Salt Lake City, Utah I her y certify that the signatures of the officers above sub- scribed are true and genuine. WALKER BANK & TRUST COMPANY By: Glen V. Margetts Assistant Vice President - 11 - STATE OF UTAH ) ss COUNTY OF SALT LAKE) AUDITOR'S CERTIFICATE I, Lawrence A. Jones, the duly chosen, qualified and acting City Auditor of Salt Lake City, Utah, do hereby certify as follows: 1. The total assessed valuation of all taxable property in the City, according to the assesment for the year 1974 as fully equalized was $ 352,133,614 and for the year 1975 will not be less than $ 372,006,006 2. The tax levy for the City for the year 1974 was 24.50 mills and produced the sum of $ 8,627,274 and license fees and other revenues received to date during the fiscal year ending June 30, 1976, exclusive of such taxes, is $ 19,582,891 3. The estimated expenses for the fiscal year ending June 30, 1976, will be $ 32,414,221 which sum it will be necessary to raise by taxes and other revenues during such fiscal year. 4. The estimated tax levy for the year 1975 is 23.50 mills, which is estimated to produce the amount of $ 8,479,877 and the license fees and revenues other than from general taxes of Salt Lake City for the fiscal year ending June 30, 1976, are estimated to produce $ 23,934,344 so that the total estimated taxes and other revenues of Salt Lake City levied and to be collected for the fiscal year ending June 30, 1976 will be $ 32,414,221 of which there has been received to the date of this certificate bears the sum of $ None 5. The taxes heretofore levied for all previous years not yet collected or paid to said City which are outstanding and uncollected on the date this certificate bears are approximately $ 182,000 6. The total authorized issue of $6,000,000.00 Salt Lake City Tax Anticipation Bonds, dated July 1, 1975, may be legally issued and delivered within the debt limit of said City, is not in excess of the estimated taxes and other revenues of said City for the fiscal year ending June 30, 1976, and is made in anticipation of the collection of such taxes and other revenues. 7. The total indebtedness of said City made in anticipa- tion of the collection of taxes and other revenues for the fiscal year ending June 30, 1976, including the present issue of $6,000,000.00 Salt Lake City, Utah, Tax Anticipation Bonds, dated July 1, 1975, is $ 22,290,000 8. The aggregate amount of floating and other indebted- ness of said City of every nature whatsoever, including all outstanding warrants in excess of the funds on hand and available for payment of such warrants, other than the indebted- ness mentioned in paragraphs 7, 9 and 10 is $ None 9. The City has revenue bonds outstanding in the sum of $ 120,000 for which $ 30,000 is required for principal and interest payments during the fiscal year ending June 30, 1976. 10. The total bonded general obligation indebtedness of said City, exclusive of the present issue of $6,000,000.00 Salt Lake City, Utah, Tax Anticipation Bonds, dated July 1, 1975, is $ 16,290,000 - 12 - • and the total amount of cash in all sinking funds of the City set aside for the payment of such indebtedness is not less than $5,292,587 11. The City has never within the last ten years 'defaulted for fifteen days or more in the payment of principal or interest of any bonded debt authorized to be contracted by it. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of Salt Lake City, Utah, as of this 30th day of June, 1975. 2 C ty Auditor _ ✓ City,' (SEAL) • • - 13 - ARBITRAGE CERTIFICATE (Tax Anticipation Bonds) STATE OF UTAH ss COUNTY OF SALT LAKE) The undersigned Treasurer of Salt Lake City, Utah, "Issuer," Certifies and reasonably expects that the following will occur with respect to the tax anticipation bonds of the Issuer in the aggregate principal amount of $6,000,000.00 dated July 1, 1975, (the "Bonds") : 1. The Bonds are to be issued in anticipation of the collection of taxes and other revenues of the Issuer for the current year and are for the purpose of financing all or a portion of the maximum anticipated cumulative cash flow deficit of the Issuer computed pursuant to the regulations proposed by the United States Treasury Department published in the Federal Register on May 3, 1973. 2. The maximum anticipated cumulative cash flow deficit of the Issuer from the date of issue of the Bonds to maturity is computed as follows: Cumulative Estimated Estimated Surplus (or Expense (a) Receipt (b) Deficit) at end of month (c) Cash and other amounts (d) available for payment of expenditures as of the end of the month of June, 1975 (insert last $ 100,000 month preceding date of issue for which figures are available) . Each succeeding month from issue to maturity $ $ $ July 2098,783 557,958 (1,940,825) August 2,679,300 1,470,970 (3,149,155) September 3,037,147 2,024,475 (4,161,827) October 2,854,920 853,911 (6,162,836) November 2,266,528 1,856,984 (6,572,380) December 2,723,050 9,437,147 135,717 January, 1976 2,094,228 1,766,861 (191,650) February 2,554,667 2,359,192 (387,125) March 2,682,254 4,787,760 1,718,381 April 2,052,470 1,370,828 1,036,739 May 2,582,570 2,381,600 835,769 June 4,482,981 3,747,212 100,000 - 14 - Footnote (a) "Estimated Receipts" does not include receipt's which do not become a part of the general funds of the Issuer because they can only be used for specific purposes and "Estimated Expenses" does not exclude expenses from receipts which are so earmarked and limited. All other receipts, including receipts from investments, property taxes, fees and other revenue available for gereral purposes of the Issuers and all expenditures from such funds for such purposes are included in such estimates. Footnote (b) For purposes of the foregoing computation, it has been assumed that all receipts will be received on the first day of each month. Footnote (c) "Cumulative Surplus" does not include the amount of a cash balance reasonably required by the Issuer as a reserve for payment of expenditures. Footnote (d) Amounts in accounts, including general fund accounts and special accounts, have been considered to be available for the payment of expenditures to the extent that such accounts may be invaded to pay such expenditures without a legislative, judicial or contractual requirement that such accounts be reimbursed. 3. The maximum cumulative cash flow deficit according to the foregoing computation is $ 6,572,380 and the amount reasonably required by the Issuer as a cash balance on hand at all times is $ 2,729,050 so that the total maximum anticipated cumulative cash flow deficit during the period prior to maturity of the bonds is $ 9,301,430 ' On the basis of the foregoing, it is not expected that the proceeds of the Bonds will be used in a manner which cause the Bonds to be Arbitrage Bonds under Section 103 (d) of the Internal Revenue Code and the regulations prescribed under the Section. To the best of my know- ledge and belief, there are no other facts, estimates or circumstances that would materially change the foregoing conclusion. DATED this .SeJrj day of June, 1975. r asurer - 15 - V STATE OF UTAH ss COUNTY OF SALT LAKE ) RECEIPT I. Joseph L. Fakler, the duly chosen, qualified and acting Treasurer of Salt Lake City, Utah, do hereby certify that I have on this / day of July, 1975, received from Walker Bank & Trust Company, the purchase price of $6,000,000.00 Salt Lake City, Utah Tax Anticipation Bonds, dated July 1, 1975, bonds numbered 1 through 6 in the principal amount of $1,000,000.00 each, due June 30, 1976, and bearing interest at the rate of 3.50% per annum, said purchase price being as follows: Principal $6,000,000.00 Premium 7,200.00 Total $ I herby certify that the officers who signed the bonds, viz: Conrad B. Harrison, Mayor, Salt Lake City, Utah, Lawrence A. Jones, Mildred V. Higham Recorder, Auditor, Salt Lake City, Utah, and Salt Lake City, Utah are still in office. DATED this day of July, 1975. 111 (SEAL) - 16 -