HomeMy WebLinkAboutResolutions - No. 2003-178RESOLUTION OF. THE LORI CITY COUNCIL REGARDING ITS
INTENTION TO ISSUE TAX-EXEMPT WASTEWATER OBLIGATIONS-----------------`
WHEREAS, the, City of Lodi .(the "Borrower") desires to finance the costs of
acquiring; construction < reconstructing and/or equipping certain public facilities wand
improvements relating to its wastewater system, as provided in Exhibit'A attached hereto
and incorporated herein (the "Project"); and
WHEREAS, the Borrower intends to finance the acquisition, construction;
reconstructing and/or equipping. of the Project or portions of the Project with .the
proceeds of the sale of obligations the interest upon which is excluded from gross
income for federal income tax purposes (the "Obligations"); and
WHEREAS, prior to th.e issuance of the Obligations the Borrower desires to incur
certain. capital expenditures (tate "Expenditures") with respect to the Project from
available moneys of the Borrower; and
WHEREAS, this Governing Board of the Borrower has determined that those.
moneys to be advanced on and after; the date hereof to pay the Experiditures are
available. only for 6 temporary period and it is necessary to reimburse the Borrower fo r
the Expenditures from the proceeds of the Obligations;
NOW; THEREFORE, THIS; GOVERNII G BOARD OF THE CITY OF LODI DOES
HEREBY RESOLVE, ORDER ARID DETERMINE AS FOLLOWS:
SECTION # The borrower hereby states its intention and reasonably expects to
reimburse Project casts incurred prior to the issuance of the Obligations with proceeds of
the Obligation. 'Exhibit A describes the general character, type, purpose; and function of
the Project.
SECT ION< 2, The reasonably expected maximum principal amount of the Obligations is
not to exceed ,000,000.
SECTION S. ,This resolutionis being adapted no later than 60 days after the date on
which the Borrower will expendmoneys for the portion of the Project costs to be
reimburs.od from proceeds of the Obligations.
SECTION 4. The Borrower will make a reimbursement allocation, which is a written
allocation that evidences the Sorrower's use of proceeds of the Obligations to reimburse
an Expenditure, no later than i months after the later of the date on which the
Expenditure is paid.or the Project is placed in service or abandoned, but in no event
more than three years after the; date on which the Expenditure is paid, For Obligations
subject to the srnall governmental issuer exception of Section 148(f)(4)(D) of the Internal
Revenue Code. of 1986, as amended, the "eighteen -month limit" of the previous
sentence is changed to "three years" and the "three-year limitation" of the previous
sentence is not applicable.
� CTI�N . Tl o limitations described in Section 3 and Section 4 do not apply to (a)
casts of issuance of the Obligations, (b) an ,amount not in excess of the lesser of
$100,000..cr five percent ( °fp) of the proceeds of the {obligations, of (c) any preliminary
expenditures, such ..as architeetural, engineering', surveying, soil testing, and similar
costs tither than land acquisition, site preparation, and .similar costs incident to
commencement of construction, not in excess of twenty percent (2.0%) of the aggregate
issue price of the Obligatilbns that finances the Project for which the preliminary
expenditures were incurred.
ECTION :6..Each expenditure will be of a type properly chargeable to a capital account
under general federalincome tax principles (determined in each case as of the date of
the Expenditure).
SECTION :7. To the best of our knowledge, this Governing Hoard is not aware of the
previous doptiar of off- ieI intents by the Borrower that have been made as a matter of
course for the purpose of reimbursing expenditures and for which tax-exempt obligations
have not been issued.
5ONB. This resolution is. adopted as official action of the Borrower in order to
comply with Treasury Regulation §1.1-2 and any other regulations of the Internal
Revenue Service relating to the qualification for reimbursement of Borrower
expenditures incurred prior'to.the date of issue of the Obligations.
TIQN 9. All the recitals in this Resolution are true and correct and this Governing
Board so finds, determines and represents.
Dated: September 17, 2003
I hereby certify that Resolution No. 20033-178 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held September 17, 20033 by the
fallowing vote:
AYES: COUNCIL MEMBERS -- Beckman, Hansen, Howard, Land,
and Mayor Hitchcock
NOES:
COUNCIL MEMBERS — None
ABSENT:
COUNCIL MEMBERS None
COUNCIL R
SUSAN J. BLACK aTON
City Clerk
go2n.1>rl
DESCRIPTION CSP PROJECT
The project to be financed consists of various capital improvements to the Borrower's
wastewater system, including certain infrastructure improvements.