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HomeMy WebLinkAbout1988-03-15; City Council; 9334; ACA 32 Bradley Support General Obligation Bonds.. l l ; ' I I l (, 1 1 0 UJ ~ '1 0:: 0.. 0.. c:( .. z 0 ~ ..J u z = 0 CJ CIT~.OF CARLSBAD -AGEND~~,BILL ,_ ______ _ AB# 9 33 ':f_ I!IlE; MTG. 3/15/88 DEPT._13.L~. RECOMMENDED ACTION: ACA 32 (BRADLEY) -SUPPORT ---r ··--• £;. .,, UCt" • MU-,.1 N-:::: CITY~.nvV&S CITYMGR.?11_ Authorize the Mayor to sign the attached letter supporting ACA 32 (Bradley). ITEM EXPLANATION: Presently, two-third {67%) voter approval is required for local government agencies to incur any indebtedness which exceeds the agency's income for a fiscal year. ACA 32 would reduce the vote requirement for these general obligation bond measures to 60%. ACA 32 would apply to cities, counties, and school districts. Many cities which have gone to their voters for approval of general obligation bonds have failed to obtain the necessary 67%, and often by only a few percentage points. This was the case in Carlsbad in November 1986, when 64.5% of those who voted favored Proposition F, which would have allowed the City to issue general obligation bonds totalling $5,950,000 for the purpose of acquiring Hosp Grove. By reducing the vote requirement, ACA 32 is intended to facilitate the ability of local governments to obtain approval for general obligation bonds. Presently, state general obligation bonds require only a majority vote approval. EXHIBITS: 1. Letter to Assemblyman Peter Chacon, Chairman of the Assembly Elections, Reapportionment and Constitutional Amendments Committee, urging support of ACA 32 (Bradley). .. 1200 ELM AVENUE CARLSBAD, CA 92008·1989 TELEPHONE (619) 434-2830 Office of the Mayor <!titu nf Qturlahah March 16, 1988 Assemblyman Peter Chacon, Chairman Committee on Elections, Reapportionment & Constitutional Amendments 5119 State Capitol Sacramento, California 95814 ACA 32 (BRADLEY) -SUPPORT The use of general obligation bonds to finance needed public facilities in a timely manner is critical to local governments. The City of Carlsbad welcomes any relief which would facilitate the ability of local governments to obtain approval for general obligation bonds. In 1986, the Carlsbad City Council placed Proposition Fon the November ballot. Proposition r-would have allowed the City to issue general obligation bonds in the amount of $5,950,000 for the purpose of acquiring a eucalyptus forest known as Hosp Grove, which would have been used as a public park. 64.5% of the votes cast were in favor of Proposition F, significantly more than a majority but unfortunately 2.5% less than the required two-third voter approval needed. I and the City Council of Carlsbad urge you and the Committee on Elections, Reapportionment & Constitutional Amendments to support ACA 32 in an expeditious manner. ACA 32 would help California Cities at a time when financial opportunities are limited. Sincerely, . .V A~_,.) ¼.-c-, ~LAUDE A. 'iUD" LEWIS Mayor pgk c: Assemblyman Robert Frazee Assemblyman William Bradley League of California Cities