HomeMy WebLinkAboutCC Res 1854 1970-05-04
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RESOLUTION NU~ .1i.5:f.-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH, CALIFORNIA, A CHARTER CITY, ENDORSING
THE PASSAGE OF PROPOSITION NUMBER 7,
WHEREAS, Proposition 7 on the statewide June 2nd primary ballot
would adjust the maximum interest rate from 5% to 7% on general
obligation bonds of the State already approved by the voters
but not yet sold; and
WHEREAS, $1,3 Billon of bonds authorized by the voters of
California cannot be sold at the existing legal ceiling of 5%
because of market conditions; and
WHEREAS, The inability to market these bonds has jeopardized
vitally important programs, including the State Water project,
Cal-vet loans, acquisition and development of beaches, parks,
recreation and historical facilities, state aid for local
school construction, higher education and junior colleg~s; and
WHEREAS, $600 Million of these bonds which cannot be sold are
needed to complete the State Water Project, and
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WHEREAS, These water bonds and Cal-Vet loan bonds are self-
liquidating, with the principal and interest paid by those',
benefiting, and thus an increase in the interest rate on these
bonds would not cause an increase in state taxes; and
WHEREAS, If Proposition 7 should fail, the already overburdened
taxpayers of the State would be called on to provide the funds
needed to complete these projects; and
WHEREAS, Even a delay in completing the water project would
result in additional costs of more than $200 Million as a result
of inflation and the wastefulness of shutting down and then
re-starting construction; and
WHEREAS, Failure to complete the State Water Project on schedule
could cripple not only the economy of Southern California, but
also that of the entire State:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Seal Beach does hereby go on record as endorsing the passage of
Proposition 7 as an overriding necessity for the benefit of all the
people in the State of California; and
BE IT FURTHER RESOLVED that the City Council of the City of
Seal Beach urges all citizens of the State to join in casting a
"YES" vote for proposition 7,
PASSED,
the 4th
AYES:
NOES:
ABSENT:
APPROVED, AND
day of May,
Councilmen
Councilmen
Councilmen
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