HomeMy WebLinkAboutTC Res 34-2024
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Town Council Resolution No. 34-2024 October 16, 2024
RESOLUTION NO. 34-2024
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AUTHORIZING THE DISPOSITION OF SURPLUS MONEY IN THE FUNDS FOR THE TOWN OF TIBURON ASSESSMENT DISTRICT NO. 2017-1 (HAWTHORNE UNDERGROUNDING DISTRICT)
WHEREAS, the Town Council of the Town of Tiburon (the “Town”) has previously adopted Town Council Resolution No. 2996 supporting the undergrounding of overhead utility wires and poles and has adopted Policy and Procedures for the Formation of Utility Undergrounding Assessment Districts (the “Policies”); and
WHEREAS, in accordance with the Policies, this Town Council has taken proceedings under
the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (the “Code”) to form the Town of Tiburon Assessment District No. 2017-1 (Hawthorne Undergrounding District) (the “Assessment District”) and has levied assessments on the land within the Assessment District and issued bonds secured by such assessments (the “Bonds”); and
WHEREAS, after the completion of the improvements (the “Improvements”) and the payment of all the claims from the Improvement Fund established for the Assessment District by the Bond Indenture by and between the Town and U.S. Bank Trust Company, National Association, as successor trustee (the “Trustee”) pursuant to which the Bonds were issued (as supplemented from
time to time, the “Indenture”), there remains a surplus in the Improvement Fund in the amount of
approximately $848,145.45; and
WHEREAS, pursuant to Sections 10427 of the Code, such surplus money remaining in the Improvement Fund may be used for a number of different purposes, including to call Bonds, thereby reducing outstanding assessments and subsequent assessment installments; and
WHEREAS, the Town Council of the Town now desires to declare all the amounts remaining in the Improvement Fund for the Assessment District surplus and to direct that such surplus amounts be applied as set for in Sections 10427(d) and 10427.1 of the Code; and
WHEREAS, a total of 21 parcels of property within the Assessment District made cash
prepayments totaling approximately $1,325,408.48 towards their respective assessments prior to the issuance of the Bonds; and
WHEREAS, the Town contributed a total of approximately $406,803 as cash prepayments towards the Improvements prior to the issuance of the Bonds; and
WHEREAS, approximately $19,672 of the Town’s cash prepayment was a contribution for
the general benefit provided by the Improvements, and the remaining $387,131 of the Town’s cash prepayment was (1) a contribution of 75% of each of the assessments levied by the Assessment District on two non-taxable properties in the Assessment District; and (2) a contribution applied proportionately amongst the remaining parcels of property within the Assessment District;
NOW, THEREFORE, the Town Council of the Town of Tiburon DOES HEREBY FIND,
DETERMINE, RESOLVE, AND ORDER as follows:
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Town Council Resolution No. 34-2024 October 16, 2024
Section 1. The above recitals are all true and correct.
Section 2. Pursuant to Section 10427 of the Code, the Town Council of the Town hereby
declares all amounts on deposit in the Improvement Fund established by the Indenture to be surplus.
Section 3. The Town Council hereby directs that that the surplus funds described in the foregoing Section 2 are to be applied in accordance with Section 10427(d) of the Code to optionally redeem a portion of the Bonds issued and outstanding under the Indenture on March 2, 2025 and to
provide a credit to any assessment previously paid in cash, including the assessments which were partially prepaid in cash by the Town prior to the issuance of the Bonds, in the amount of such assessment’s proportionate share of the surplus funds, as described in Section 10427.1 of the Code.
Section 4. The Town Council hereby authorizes the Town Manager, and any other proper official of the Town, to take all actions necessary to carry out the disposition of such surplus
funds in accordance with Sections 10427(d) and 10427.1 of the Code and to provide notice to the owners of the Bonds of the planned redemption on March 2, 2025.
Section 5. This Resolution shall take effect immediately upon its adoption.
Section 6. The Town Clerk shall certify to the passage and adoption of this resolution
and enter it into the book of original resolutions.
PASSED, APPROVED, and ADOPTED on October 16, 2024.
ALICE FREDERICKS, Mayor
ATTEST:
LEA DILENA Town Clerk
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