HomeMy Public PortalAbout70-074RESOLUTION NO. 70-074
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARSON URGING PASSAGE OF PROPOSITION 7 A THE
JUNE STATE PRIMARY ELECTION
WHEREAS, the June State primary election ballot will include a measure
designated as Proposition 7which will amend the State Constitution; and
WHEREAS, approval of this measure by the voters will ratify legislation
enacted in 1969 which raises the maximum interest rate from five percent to seven percent
on general obligation bonds of the State already authorized by the voters but not yet sold;
and
WHEREAS, adoption of Proposition 7 will also enable the Legislature by a
two-thirds vote with approval of the Governor to raise this maximum rate even further if
this proves necessary in the interests of the people of California; and
WHEREAS, One Billion, 300 Million Dollars of bonds authorized by the
voters of California cannot be sold at this existing legal ceiling of five percent because
of the depressed money market; and
WHEREAS, the inability to market these bonds has endangered programs
vital to the people of this State, including completion of the State Water Project, Ca -Vet
loans, acquisition and development of beaches, parks, recreation and historical facilities,
State aid to local school construction and higher education construction; and
WHEREAS, 600 Million Dollars of these bonds which cannot be sold are
needed to complete the State Water Project; and
WHEREAS, these water bonds are self-liquidating, with the principal and
interest paid by the water users and others benefiting from the project, and thus an increase
in the interest rates 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 might be required to provide the funds needed to complete the State Water Pro-
ject, and
WHEREAS, even a delay in completing the project could result in additional
costs of more than 200 Million Dollars as a result of inflation and the wastefulness of shutting
down and then re -starting construction, and
WHEREAS, the Metropolitan Water District of Southern California, by far
the biggest contractor for State Project Water, is relying upon this new source to meet the
needs of its continually growing population, 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
Carson, California does hereby go on record that it regards the passage of Proposition 7 at
the June State Primary Election as an overriding necessity in order to protect the welfare of
the more than ten million people of the Metropolitan Water District, and
Res. No. 70-074/P.2 of 2
BE IT FURTHER RESOLVED that the City Council does hereby urge all
citizens of the Metropolitan Water District to join in casting a "YES" vote for Proposition
7 in order that the semi -arid coastal plain of Southern California will continue to have
ample supplies of water.
PASSED, APPROVED and ADOPTED this 25th day of May, 1970.
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ATTEST: _
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CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
I, MARILYN R. CORTINA, City Clerk of the City of Carson, California,
do hereby certify that the whole number of members of the City Council of said City is five;
that the foregoing resolution, being Resolution No. 70-074, was duly and regularly adopted
by the City Council of said City at a regular meeting of said Council, duly and regularly
held on the 25th day of May, 1970, and that the same was so passed and adopted by the
following vote:
AYES: COUNCILMEN: Junk, Leahy, Marbut, Spence
and Smith.
NOES: COUNCILMEN: None.
ABSENT: COUNCILMEN: None.
CIT CLERK, ity of Carson, Ca ifomia