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RESOLUTION NO. 3402 <br /> A RESOLUTION establishing the amount of <br /> contributions Local Improvement <br /> Districts must make to the Local <br /> Improvement Guaranty Fund. <br /> WHEREAS, City Council passed Resolution 3102 on <br /> December 28, 1988 which established a policy requiring each <br /> new Local Improvement District (LID) to make contributions <br /> to the Local Improvement Guaranty Fund (Guaranty Fund) since <br /> the Guaranty Fund benefits the LIDs. The amount of <br /> contribution required in Resolution 3102 is set as a <br /> percentage of the cost of the LID. For LID' s coming to <br /> closure in 1989 the rate was 5%; in 1990 the rate is 8% ; and <br /> in 1991 the rate will be 10%, and <br /> WHEREAS, requiring a contribution rate of 10% of LID <br /> costs could possibly result in arbitrage problems when LID <br /> bonds are issued , and <br /> WHEREAS, the Guaranty Fund balance is currently 12% <br /> of outstanding LID obligations and is more than sufficient <br /> to guarantee debt service on the outstanding obligations , and <br /> WHEREAS, Ordinance 1561-89 authorizing sewer utility <br /> funding to encourage installation of sanitary sewers in <br /> unsewered areas establishes a City policy to provide <br /> financial support to unsewered existing single family or low <br /> density multiple residenses . <br />