HomeMy WebLinkAbout2813_CCv0001.pdf RESOTUTION NO. 2813
A RESOLUTTON OF THE CITY COUNCIL OF THE CITY OF RED, ANDS
URGING SUPPORT OF PROPOSITION 7 TO ADJUST !NTEREST RATE--'-',
ON GENERAL OBLIGATION BONDS ALREMY APPROVED BY THE
NUTERS BUT NOT YET S OLD
WHEREAS , Proposition 7 on the statewide June 2nd primary ballot
would adjust the maximum interest rate from 5% to 7% on general ab-
ligation bonds of the State already approved by the voters but nolt:
yet sold, and
WHEREAS , $1 . 3 billion of bonds authorized by the voters of
California cannot be sold at the existing legal ceiling of 5% because
of market conditions, and
WHEREM the inability to market these bonds has Aeapardizl
vitally important pxograms, including the State Water Project, Cal-
Vet loans , acquisition and development of beaches, parks, recreation,
and historical facilities, state aid for local school construcKon,
higher education and juniox colleges, and
WHERMS , if Proposition 7 should fail, the alyeady overbuydened
taxpayers of the State would be called on to provide the funds neede-.,
to complete the projects, and
WHEREAS , $403 million of these bonds which cannot be sold are
needed to completa important construction pyograms for educatlona:1,
purposes. including those for local schools. the Uniuersity of
California and State College campuses , and junior colleges,
WHEREM , the funds already approved by the voters are criticai-
ly needed if our educational program throughout the State is not U--,
be seriously handicapped and capital construction brought to a stand-
still, and
WHEREAS , the proper education of our children of all ages is M'
course essential to the we3fare and Muza of the state nnd Notion ,,
an6
WHEREAS , Proposition 7 would mean the addition of thousands of
jobs on thege construction progzams, and
MEREAS , the purchasing power of the pacp!e c)E c;11j,fc)rj1Q ijrc:,�
its entire economy would benefit,
NU
V? THEREFORE BE 1T RESOLVED that the Redlands City Council.
does hereby go on record as endorsing the passage of Proposition -7
as an overriding necessity fay the benefit of all the people K tho
State of California, and
BE 1T FURTHER RESOLVED that the Redlands City Council does
hereby urge all citizens of the State to join in casting a "YES ''
vote for Proposition 7 .
APPROVED AND ADOPTED this 5th day of May, 1970,
ATTFS0,
City of Red 1 and,,,;
o E
C ip
Southern California Headquarters:6380 Wilshire Boulevard, Room 1113, Los Ang6es W� . Phare 653-5570
Preston i" otchkis,Chairman - ,lames Warren Beebe, Finance Chairman . Franklin Stockbridge, Vice Chairman • Bruce J.,faeger,CPA,ireasurer
Maxch 9, 197
No.California
Headquarters:
Flood Suik�=ng, Pm,828
$an Francisco 194102 1jon. City Council
VV. R Brarastedt City of Redlands
chairman Co veil Chambers
Alan. K.Browse City of Redlands Safety Hallri,ance Chairma
21roohside avenue
Redlands, California
Califorri a. is heading into a. financi.a,l crisis which uoul.d be catastrophic
tea the taxpaying public. 1t can only be avoided by removing ng the 59, limit
on interest the State can pay on general obligation bonds.
To do this reouires a constitutional amendment. That is1v;rj-a- Propo:ziti cn
on the June 2nd ballot will do if passed by tkhe voters. CS'pec ifically, it
would chafe the lei t to To, buy, only on S-111-ate bonds Which have heretofore
been, voted, by the people and renain un=sold. Right nog,;' over l •3 billion of
voter-approved State bonds cannot be sold in today's 1--.j>-intereai. rn-"ke*
Vital pxograras are at stake. Our State Water Project, Which is alri?ady
reaching into Southern California, is in jeopard,~, Grath *600 rill ori of its
bonds me mining unsold. This pro1ject is to bring grater to 13 million people
in southern California by 1972 and is essential to the continued prosperity
of the area.
Failure to pass Proposition. 7 would result in our water pro am closing
dorm for lack of financing. Penalties and added costs b ro:a ,such a def a.'a.l.t
would have to be ode up by the taxpayers, as they would have to ass e
them through -Eche State's General Fund.
Other important California programs that are iii-meri.led i.ncl.ude the Cal-Vet
Loa ilxor raxi, h ch needs *204 zua l l i oxo of approved bands tc h elp vetera.
acquire homes and farrLs; beaches, paras, recreation and historical.
t es involving X75 million inti i snsold bonds; state aid I l.oeal school
construction, $275 million in unsold bonds; hif her education construction,
ipVb i1.ion; junior colleges, 50 million and ether stag; fa.ci,lities,
*30 million.
IM of "hese programs ase essential. They have been approved by the voters,
yet they must be finwnced. A YES vote on Proposition 7 will assure their
ding and thereby avoid the necessity of pay?ng for them through h ggher
State and local taxes.
n r fo °° , we e as king for the fob endorsement of -Droposi tion '7 by the
edla:~sds City Council..
'Your support, will be of great help to our canTiaign. 1f you r i.sh arq further
information, we vould be happy to provide it.
Sincerely,
(5 o'li
.��-�,"ka.na '�3snrrt-r,va Y]'n-{-v.Suri ± f"fhati rrar�.s w^a
SUGGESTED RESOLUTION
WTHEREAS, the State of California faces a financial crisis because of
its inability to sell bonds of vital concern to each and every
resident, and,
WHEREAS, because of inflation, the State needs approval to raise the
interest rate now set at 5% to a more realistic level not to
exceed 71, and,
WHEREAS, the voters have already approved issuance of the bonds which
cover such critical needs as water, school construction, veteran
building loans, and park and recreation facilities, and,
WHEREAS, the massive State Water Project is already two-thirds completed
and would cost more to stop than to finish, and,
WHEREAS, that project, as well as the program of loans to veterans, are
self-supporting and won' t cost the taxpayers a cent, and,
WHEREAS, the alternative to non-passage of Proposition 7 would be an
increase in the sales tax or some other form of painful taxation
affecting everyone,
NOW, THEREFORE, BE IT RESOLVED, that the REDLANDS CITY COUNCIL
does hereby wholeheartedly endorse
Proposition 7 and urges all citizens to vote "YEV at the
election, June 2.
Southern California Headquarters, 6380 Wilshire Bowievard, Room 1113, Los Angeles 9DO P�sone 65 -597G
Freston Ho'c skis, Chairman - James Warren Beebe, Finance Chairman . Frartkiin Stockbndge, Vice Chaitman • Bruce J.Jaeger,CPA, Treasurer
No, California
Nesc�qu�rter�.
Fmuld uddl ';r;, PM, 2
San Francisco N'02
VV. F.3rarnstedt
Alan K, Browne
F1nr�/1Ce��tc?1FF718=7
VOTER-APPROVER STATE BONDS REMAINING C UNSOLLD
State Wager Project $ 600,000,000
State Aid to Local School Construction 275,000,000
Cal--Vet Loan Program 200,000,000
State Higher Education Construction 78,000,000
Beaches, Parks, Recreation and Historical
Facilities 75,000,000
junior College Construction 50,000,000
Construction of Other State Facilities 30,000,000
$1,308,000,000