Resolution 119
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RESOLUTION NO. 119
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PROVIDING FOR THE ISSUANCE OF $31,000 PRINCIPAL AMOUNT OF
"CITY OF GILROY MUNICIPAL AUDITORIUM BONDS OF 194011; PRE-
SCRIBING THE DATE AND FORM OF SAID BONDS AND OF THE COUPONS
TO BE ATTACHED THERETO: FIXING THE lVlAXIMUM RATE OF INTEREST
ON SAID BONDS, AND PRESCRIBING THE MATURITIES THEREOF: AUTHOR-
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IZING THE EXECUTION OF SAID BONDS AND COUPONS, AND PROVIDING
FOR THE LEVY OF A TAX TO PAY THE PRINCIPAL AND INTEREST THERE-
OF: AND DIRECTING NOTICE OF SALE OF SAID BOND S TO BE GIVEN.
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WHEREAS, all the requirements of law have been complied
with in calling and holding the special e~ection held in the , D.....
city of Gilroy on the 27th day of October, 1936, at which elec-
tion the proposition to issue bonds of said City in the principal
sum of $31,000 for the purpose of acquiring, constructing and
completing said municipal improvement of said City of Gilroy,
to wit: A municipal auditorium, assembly and convention hall,
including all lands, building, furniture, fixtures and equipment
necessary for municipal auditorium, assembly and convention hall
purposes, was submitted to the voters of said City; and the
Common Council of said City did meet and canvass the returns of
said election on Monday, the 2nd day of November, 1936, and did
as the result of such canvass determine and declare, and do here-
by certify, that said proposition received at said special elec-
tion the affirmative vote of more than two thirds of all of the 10.
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voters voting at said election, and was thereby carried and
adopted by said election, and the issuance of all of said bonds
by said City was duly authorized,
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NOW, THEREFORE, BE IT RESOLVED by the Common Council
of the City of Gilroy, as follows:
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Section 1. That the bonds of the City of Gilroy in
the aggregate principal sum of $31,000, to be known as the "city
of Gilroy :Municipal Auditorium Bonds of 1940," shall issue to
pay the cost of the acquisition, construction and completion of
~ the following municipal improvement of said City, to wit: A
municipal auditorium, assembly and convention hall, including
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lands, building, furniture, fixtures and equipment necessary for
municipal auditorium, assembly and convention hall purposes. It
is hereby found and determined that the city of Gilroy has re-
ceived a grant of moneys to be applied to the payment of part of
the cost of such improvement and that such grant, together with
additional moneys in the General Fund of said City which are
available for said purpose, will be sufficient together with the
proceeds of the sale of said bonds to pay the cost of the acqui-
sition, construction and completion of said improvement in time,
form and manner as contemplated in the proposition submitted to
the electors of said City. Said grant of money and said addition-
al moneys in the General Fund are hereby made available and ap-
propriated, together with the proceeds of the sale of said bonds,
to the payment of the cost of said improvement.
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section 2. That said bonds shall be issued as herein-
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after set forth, and shall be sold in accordance with law at
not less than their par value and accrued interest. Said bonds
shall be negotiable in form, and of the character known as
serial, and shall be thirty-one (31) in number, numbered conseeu~
tively from 1 to 31, both inclusive, of the denomination of
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$1000 each. All of said bonds shall bear interest from their
date until paid at the rate of four (4) per cent. per annum,
payable semiannually. SUch interest shall be evidenced by
ooupons attached to each bond, and each of said coupons shall
represent six months' interest on the bond to which it is at-
taohed. The principal and interest of said bonds shall be
payable at the offioe of the Treasurer of said City of Gilroy
in lawful money of the United States. Said bonds shall be
dated February l5, 1940 and shall mature and be payable in oon-
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secutive numerioal order, from lower to higher, as follows,
to wit:
One (1) of said bonds shall mature and be
payable on December 15th in each
of the years 19~0 to 1968, both
inclusive; and
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Two (2) of said bonds shall mature and be
payable on December 15, 1969.
Said interest ooupons shall be payable on the 15th day of June'
and the 15th day of December in eaoh year until and at the
respeotive dates of maturity of said bonds, the first coupon
on each bond being payable June 15, 1940 (representing interest
to said date from the date of said bonds hereinabove specified.)
Section 3. Said bonds shall each be substantially in
the following form, the blanks in said form and in the form of
coupon given below to be filled with appropriate words or
figures, namely:
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UNI TED STATES OF AMERICA
STATE OF CALIFORNIA
Santa Clara county
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CITY OF GILROY MUNICIPAL AUDITORIUM BOND OF 19~0
No. $1000
The City of Gilroy, a municipal corporation organ-
ized and existing under the Constitution and laws of
the State of California, hereby acknowledges itself
indebted and for value received promises to pay to the
bearer (or if this bond be registered, to the regis-
tered holder hereof) on the 15th day of December, 19 ,
ONE THOOSAND (1000) DOLLARS, together with interest -
thereon at the rate of four per cent. per annum, payable
semiannually on the 15th day of June and the 15th day
of December of each year. Unless this bond is registered
such interest shall be payable only on presentation and
surrender of the proper interest coupons hereto attached i
as they respectively become due. Both the principal of
and interest on this bond are payable in lawful money
of the United States at the office of the Treasurer oft
said City.
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This bond is issued under and pursuant to the Consti-
tution and statutes of the State of California, and under
and pursuant to the charter, ordinances and proceedings
of said City duly adopted and taken and a vote and assent
of more than two thirds of all the qualified electors of
said City voting at a special election duly called and
held for that purpose.
It is hereby certified, recited and declared that
all acts, conditions and things required by law to
exist, happen and to be performed precedent to and in
the issuance of this bond have existed, happened and
been performed in due time, form and manner as required
by law, and that the amount of this bond, together with
all other indebtedness of said City does not exceed any
limit prescribed by the Constitution or statutes of
said state or the charter of said City, and that provi-
sion has been made as required by the Constitution and
statutes of said state for the collection of an annual
tax sufficient to pay the principal of, and interest on,
this bond as the same become due. The full faith and
credit of said City are hereby pledged for the punctual
payment of the principal and interest of this bond.
This bond may be registered in the manner provided
by law and thereafter the principal hereof and interest
hereon shall be payable only to such registered owner.
IN WITNESS WHEREOF, said City of Gilroy has caused
this bond to be executed under its corporate seal,
signed by its Mayor and its Treasurer, and countersigned
by its Clerk, and has caused the interest coupons hereto
attached to be signed by its Treasurer, and this bond
to be dated the 15th day of February, 1940.
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Mayor of the City of Gilroy
city Treasurer of the City
of Gilroy
Countersigned:
city Clerk of the City of Gilroy
The interest coupons shall be signed by the Treasurer
of said City by his engraved or lithographed signature, and
shall be substantially in the following form:
$
coupon No.
On the 15th day of , 19___
the city of Gilroy will (unless the within mentioned
bond be regi~tered) pay to bearer at the office of
the Treasurer of said City Twenty Dollars, $20.
in lawful money of the United states, being six
months' interest then due on its Municipal Auditorium
Bond of 1940 . . . . . . . . . . . . . . . . . . No.
Treasurer of the City of Gilroy
Except that the first interest coupon on each of said
bonds shall be for four months' interest, in the face amount of
$13.33.
Section 4. The Mayor of said City of Gilroy and the
Treasurer of said City are hereby authorized and directed,
respectively, as such officers to sign each of said bonds on
behalf of said City, and the City Clerk is hereby authorized
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and directed to countersign each of said bonds and to affix the
corporate seal of said City thereto; and the said Treasurer is
hereby authorized and directed to sign each of the interest cou-
pons, either by his own hand or by printed, lithographed Qr
engraved facsimile signature; and such signing, countersigning
and sealing shall be a sufficient and binding execution of said
bonds and coupons by said City.
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Section 5. For the purpose of paying the prinCipal
and interest of said bonds the Common Council of said City of
Gilroy shall, at the time of fixing the general tax levy and in
the manner for such general tax levy provided, levy and collect
annually each year until said bonds are paid, or until there shall
be a sum in the treasury of said City set apart for that purpose
to meet all sums coming due for principal and interest on such
bonds, a tax sufficient to pay the annual interest on such bonds
as the same becomes due, and also such part of the principal
thereof as shall become due before the proceeds of a tax levied
at the time for making the next general tax levy can be made
available for the payment of such principal. Said tax shall be
in addition to all other taxes levied for municipal purposes,
and shall be collected at the same time and in the same manner
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as other municipal taxes are col~ected, and be used for no other
purpose than the payment of said bonds and accruing interest.
Said taxes as collected shall be t'orthwi th paid into the fund for
which the same were levied and collected and which shall be desig-
nated "19LtQ Municipal Auditorium Bond Fund,. and all sums to
became due tor the principal and interest on said bonds shall be
paid from such fund. There shall likewise be deposited in said
fund any moneys received on account of interest accrued on said
bonds from their date to the date of delivery and actual payment
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of the purchase price thereof.
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Section 6.
There is hereby created and established
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a fund to be known as "1940 Municipal Auditorium Construction
Fund," which shall be kept by the Treasurer of said City, and
all proceeds of sale of any of said bonds (except accrued
interest received on such sale) shall be placed by the Treasurer
to the credit of said fund and shall be kept separate and dis-
tinct from all other municipal funds, and shall be applied ex-
clusively to the acquisition, construction and completion of
the aforesaid municipal improvement.
Section 7.
The City Clerk is directed to cause a
sufficient number of blank bonds and coupons of suitable quality
to be lithographed, printed or engraved, and to cause the blank
spaces thereof to be filled in to comply with the provisions
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hereof, and to procure their execution by the proper officers,
and to deliver them, when so executed, to the Treasurer of
said City, who shall safely keep the same until they shall be
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sold by the Common Council; whereupon he shall deliver them
to the purchaser or purchasers thereof on receipt of the purchase.
price therefor.
Section 8. All of said bonds shall be sold by this
Common Council on the 1st day of March, 1940, and said City
Clerk is hereby directed to publiSh once in "The Gilroy
Evening Dispatch," the official newspaper of said City of Gilroy,
a notice of sale in substantially the following form, to wit:
OFFICIAL NOTICE OF SALE
OF
CITY OF GILROY MUNICIPAL AUDITORIUM BONDS OF 1940
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NOTICE IS HEREBY GIVEN that sealed bids will be
received by the City Clerk of the City of Gilroy,
State of California, at his office in said City,
until 5:00 o'clock, P.M. of ]riday, the 1st day
of March, 1940, for the purchase of ~31,000 principal
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amount of bonds, designated tlCi ty of Gilroy Municipal
Auditorium Bonds of 1940, tI aggregating in principal
amount the sum of $~1,000, consisting of 31 bonds of
the denomination of $1,000 each, numbered consecutively
from I to 31, inclusive, all dated February 15, 1940
and bearing interest at the rate of four (~) per cent.
per annum, payable semiannually on June l5th and Decem-
ber 15th of each year. ~aid bonds mature and are pay-
able in consecutivenmntrical order, from lower to
4igher, one (I) on December 15th in each of the years 1940
to 1968, both inclusive, and two (2) on December 15, 1969.
No alternative bids will be considered.
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With each bid must be submitted a certified check
or Cashier's check in the sum of $l500, payable to the
order of the Treasurer of the City of Gilroy, as guarantee
that the bidder will purchase and, pay for said bonds in
the event his bid is accepted. Bids will be received
for all, but not less than all, of said $31,000 principal
amount of said bonds at not less than their par value and
accrued interest as specified herein. All bids must be
unconditional, and, together with bidder's check must
be enclosed in a sealed envelope endorsed "proposal for
City of Gilroy Municipal Auditorium Bonds of 1940." The
City of Gilroy reserves the right to reject any and all
bids.
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The legal opinion of Messrs. OrriCk, Dahlquist,
Neff & Herrington of San Francisco, california, approving
the validity of said bonds will be furnished to the
successful bidder without charge, together with a certi-
fied copy of the tr~nscript of proceedings.
Said bonds were authorized at an election held on
October 27, 1936 (the vote being 611 "ns" and 52 "No")
for the acquisition, construction and completion of a
municipal auditorium, assembly and convention hall, all
as set forth in the proposition as submitted at said
election.
The city of Gilroy was incorporated March 12, 1870.
The population (Census of 1930) was 3502; the present
conservative estimate is 3800. The assessed valuation
of all taxable property in said City is $3~196~256.00'and
. the total bonded indebtedness (not including this issue)
is $ 128,500.00 The tax collection record of
said City is as follows:
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Amount of Oi ty Amount of~]lt.
taxes uncollec- Ci ty taxes',~
ted at the end of collecteda~\~t
each fiscal year July l~ 19~~~'
Total amount
0 of City taxes
Fiscal levied for each
Year fiscal year
1934-35 $28,005.48
1935-36 29,286.27
1936-37 28,698.82
1937-38 32,53l.83
1938-39 30,883.29
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Further information relative to the financial conditton
of the City will be furnished to any bidder upon request.
This notice is given pursuant to resolution of the Common
Council of the city of Gilroy adopted February 13, 1940.
Po' A.COX
city Clerk of the City of
Gilroy, California.
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Section 9. This resolution shall take effect from
and after its passage and approval.
PASSED AND ADOPTED this 13th day of February, 1940
by the following vote:
Ayes:
Councilmen:George C.Milias,Jr.,Jack Rogers,
James Battersby,George M.1~son,
Nat Heiner.
Counc ilmen: None
Noes:
Absent: Councilmen:George A.Martin
Mar;:; -<i\1!c~dtOY'
California.
Attest:
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City Clerk
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