Reso 0436-08/1976 RESOLUTION NO. 436
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SAN MARCOS COUNTY WATER DISTRICT CONCERNING
THE DISCRETIONARY AUTHORITY OF THE BOARD OF
DIRECTORS TO USE CERTAIN RESERVE FUNDS FOR
THE PURPOSE OF MAKING INTERIM PAYMENTS ON
ASSESSMENT DISTRICT NO. 75-1 BONDS IN THE
EVENT OF DEFAULT BY A PROPERTY OWNER
WHEREAS, by Resolution No. 432 of the SAN MARCOS COUNTY
WATER DISTRICT, the Board of Directors of the SAN MARCOS COUNTY WATER
DISTRICT declared its intention to sell bonds of Assessment District
No. 75-1 and fixed the time and place for receiving bids; and
WHEREAS, Note 1 to the SAN MARCOS COUNTY WATER DISTRICT
Financial Statements Year Ended June 30, 1975 with report of Certified
Public Accountant states in part as follows:
Reserve water and sewer funds were established
to separate from the general fund, amounts that
will either be expended for utility plant and
additions or invested in revenue producing sec-
urities. Funds may be transferred from the
general fund to the reserve funds by the District
management. Board approval is necessary to
transfer any amounts out of these reserve funds.
WHEREAS, there is an excess of ONE MILLION DOLLARS ($1,000,000)
in the reserve water and sewer funds which, in the discretion of the
Board of Directors, may be used for any lawful business or purpose or
function of the District, including but not limited to the use of funds
for interim payments on Assessment District No. 75-1 Bonds in the event
of default by property owners, pending the time required to foreclose
on property on which the property owners defaulted on the bonds and
the time for resale of said property or other collection alternatives.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF SAN MARCOS COUNTY
WATER DISTRICT DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS
FOLLOWS:
Section 1: The reserve funds available to the Board of
Directors are in excess of ONE MILLION DOLLARS ($1,000,000).
Section 2: In the event of the use of a portion of such
funds becomes necessary, the Board of Directors, in the exercise of
the discretion of the Board, may assert the prerogative of the Board
of Directors to utilize a portion of said funds to make interim
Resolution No. 436
payments on the Assessment District No. 75-1 Bonds, in the event of
default by a property owner, pending foreclosure on the property and
resale of the property or pending the exercise of other collection
alternatives.
PASSED, ADOPTED AND APPROVED by the Board of Directors of
the SAN MARCOS COUNTY WATER DISTRICT at a regular meeting of the Board
of Directors held on August 2, 1976, by the following roll call vote:
AYES: Directors: Michel, Vanderbeck, Dow, Mahr, Blanchard
NOES: Directors: None
ABSTAIN: Directors: None
ABSENT: Directors: None
of San Marcos County Water District
ATTEST:
J' Marcos