HomeMy WebLinkAbout1970-04-06 - Resolution No. 190t
RESOLUTION NO. 190
A RESOLUTION OF THE YORBA LINDA COUNTY WATER DISTRICT
URGING A YES VOTE ON PROPOSITION 7, WHICH WOULD INCREASE
THE MAXIMUM INTEREST RATE ON STATE GENERAL OBLIGATION
BONDS FROM 5% to 7%
WHEREAS, the present limitation of 5% on the amount of interest
that the State can pay on general obligation bonds makes it
impossible to sell bonds in today's nationwide high interest
market; and
WHEREAS, $1.3 billion in State bonds authorized by vote of the
people remain unsold because, under the 5% interest limitation
they cannot compete in the market; and
WHEREAS, $600 million in unsold bonds are bonds authorized by
California voters for construction of the State Water Project,
which is more than one-half completed and is scheduled to bring
needed high-quality water to the 18000 people living within our
District; and
WHEREAS, $ 275 million in unsold bonds are bonds authorized by
California voters to aid local school districts for construction
of needed elementary and high schools; and
WHEREAS, $200 million in unsold bonds are bonds authorized by
California voters for theCal-Vet Loan Program, with new applications
for loans by veterans accumulating at the rate of about 1100 per
month; and
WHEREAS, $233 million in unsold bonds are bonds authorized by
California voters for beaches, parks, recreational and historical
facilities, higher education construction, junior college con-
struction and other state facilities; and
WHEREAS, if the bonds cannot be sold because of the 5% interest
limitations, then taxes must be increased to continue these vital
programs; and
WHEREAS, passage of Proposition 7 would increase the interest
limitation to 7% and would allow further increases in the interest
limit only by a two-thirds vote of each House of the Legislature
and approval by the Governor; and
WHEREAS, increase of the interest limit would allow the State
bonds to be successfully marketed at the very lowest interest
rate obtainable without repetition of the present stalemate and
halting of urgently needed construction programs;
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
YORBA LINDA COUNTY WATER DISTRICT that the residents of the District
be strongly urged to support Proposition 7, and to vote YES on
Proposition 7 at the forthcoming Special Election on June L.
BE IT FURTHER RESOLVED THAT this Resolution be sent to all
appropriate Legislators encouraging a reply from them on their
support in favor of passage of Proposition 7.
Passed and adopted this 6th day of April, 1970 at the adjourned
meeting of said Board of Directors by the following called vote:
AYES: CJ o r., i i,p Q ~I OSJ~i.vG t /~iYR v j
NOES: /v o Al
P
ABSENT: Presi ent
ATTEST:
SecroOry