HomeMy WebLinkAboutAgenda Report - October 16, 1996 (46)CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Declaration of Official Intent of City of Lodi to Reimburse Certain Expenditures from
Proceeds of Indebtedness
MEETING DATE: October 16, 1996
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve the attached resolution of Declaration of Official
Intent to reimburse certain expenditures from proceeds of indebtedness.
BACKGROUND: Approval of this resolution enables, but does not obligate, the City of Lodi to
reimburse itself for capital improvements to the electric system back to the
date of adoption of this resolution. If the City determines at some future date
that it is beneficial to finance certain distribution system capital improvements,
the City would have the option of reimbursing itself for capital expenditures made from October 16, 1996 up to
the date of the financing. Currently, the Electric Utility system funds capital improvements on a "pay-as-you-go"
basis totalling approximately $1 M per year. This resolution creates an option, not an obligation.
FUNDING: Electric Utility Fund
Attachment
ANV/sh
cc: City Attorney
APPROVED -_
HAUSERIADMIN\CTYCNCL1101696.CC 1
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A an 4. V Ilo
Electric Utility Director
October 9, 1996
RESOLUTION NO. 96-152
A RESOLUTION OF THE LODI CITY COUNCIL
OF DECLARATION OF OFFICIAL INTENT OF CITY OF LODI
TO REIMBURSE CERTAIN EXPENDITURES FROM
PROCEEDS OF INDEBTEDNESS
WHEREAS, the City of Lodi (the "Issuer") intends to acquire and construct
certain improvements to its electric distribution system (the "Project");
WHEREAS, the Issuer expects to pay certain expenditures (the "Reimbursement
Expenditures") in connection with the Project prior to the issuance of indebtedness for
the purpose of financing costs associated with the Project on a long-term basis;
WHEREAS, the Issuer reasonably expects that debt obligations in an amount not
expected to exceed $12,000,000 will be issued and that certain of the proceeds of such
debt obligations will be used to reimburse the Reimbursement Expenditures; and
WHEREAS, Section 1.150-2 of the Treasury Regulations requires the Issuer to
declare its reasonable official intent to reimburse prior expenditures for the Project with
proceeds of a subsequent borrowing;
NOW, THEREFORE, the Issuer declares:
Section 1. The Issuer finds and determines that the foregoing recitals are
true and correct.
Section 2. This declaration is made solely for purposes of establishing
compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This
declaration does not bind the Issuer to make any expenditure, incur any indebtedness,
or proceed with the Project.
Section 3. The Issuer hereby declares its official intent to use proceeds of
indebtedness to reimburse itself for Reimbursement Expenditures.
Section 4. This declaration shall take effect from and after its adoption.
Dated: October 16, 1996
I hereby certify that Resolution No. 96-152 was passed and adopted by the Lodi
City Council in a special meeting held October 16, 1996 by the following vote:
AYES: Council Members - Davenport, Mann, Pennino, Sieglock and
Warner (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
ABSTAIN: Council Members - None
J IFER M�PERRIN .
City Clerk
The undersigned, Jennifer M. Perrin, City Clerk of Issuer, hereby certifies that
the foregoing is a full, true and correct copy of the declaration of the City Council of said
Issuer duly made at a meeting thereof held on the date specified below, and that said
declaration has not been amended, modified or revoked by said City Council.
Dated: October 16, 1996
NIFER PERRIN
City Clerk
96-152